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| UK Businesses For SaleRBS rescues Four Seasons from abandonment by owner
21/07/2008
Four Seasons, the troubled nursing-home chain worth £1.3bn, is to be rescued by The Royal Bank of Scotland as the chain's owner, the Qatar Investment Authority, abandoned salvage plans.
The QIA previously appointed Credit Suisse to assist with a financial restructuring of the care home chain, but was unable to come to an agreement with the debt holders. The QIA have accepted that its £110m stake in the business is worthless. It is thought that the QIA have approached Paul Taylor, its former investment partner, to assist RBS with finding a solution. Taylor bought the business two years ago. RBS is amongst the largest holders of Four Season's debt and it holds £90m of the £160m Piks issued. They initially yielded 22%, but it is understood that they now have little value. The new proposal has RBS setting up a £800m loan facility with the request that debt holders turn a portion of their debt into equity. A solution that is being considered is to merge Four Seasons with the Priory, a health chain also owned by The Royal Bank of Scotland. Four Seasons is an independent healthcare provider based in the UK and was established in the late 1980s. The group owns and operates over 400 care centres and nursing homes, whilst employing over 21,000 people. |
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