Four Seasons Healthcare is at risk of being sold off if it does not agree to undergo a restructuring deal that would reduce its debt of £1.5bn by half.
All the holders of senior debt and about 75% of junior creditors have until July 6 to sign up to the plan, according to the Financial Times.
The value of the care homes operator is thought to be between £700m and £900m, a figure that falls way below its debt level.
Deutsche Bank was hired last month to review the business and assess its options, which could include a sale.
It is understood that the owners of the Priory Group and private equity company Advent could be interested in the possible sale.
Four Seasons was acquired by a Qatari-supported fund in 2006. About £600m of loans was then converted into commercial mortgage-backed securities.
Last September, the group defaulted on its loans and has negotiated standstill agreements with its 30-odd lenders.
