Fri, 15 Dec 2017 | ADMINISTRATION
Four Seasons Health Care, the second largest care home operator in the UK, has struck a last-ditch deal with its major creditor in an attempt to avoid administration.
The company, which is struggling under £525 million of debt and faced a critical interest payment on Friday, was able to draw up a 'standstill' agreement with H/2 Capital Partner at the last minute.
A statement given yesterday confirmed they had reached a deal: "This standstill ensures continuity of care for Four Seasons' residents and enhances operational stability for employees and all stakeholders."
"The primary objective of a restructuring plan is to create a sustainable, long-term capital structure that best-serves residents, patients and employees."
The move will give the group more time to agree to a long-term restructuring, with H/2 set to take full control of the care homes operator – details of which still need to be agreed upon.
Until it is signed off, the future of 17,000 elderly residents across 343 homes is still in doubt.
Four Seasons chairman Robbie Barr said: "The board and I look forward to working closely with H/2 and their advisers on delivering a restructuring that will provide the right capital structure for the company's long-term needs."
The CEO of H/2, Spencer Haber, also said the agreement was a promising "first step" towards a successful restructuring, and described Four Seasons as a "vitally important care provider".
The company specialises in support for young people leaving care, primarily aged between 16 and 25 years. Highly regarded as a dedicated, forward-thinking and professional service provider.
FREEHOLD
An independent supplier of personal protective equipment (PPE) for private and commercial customers throughout the UK. Products offered include disposable and washable face masks, hand sanitisers and wipes, thermometers, face shields, Covid testing k...
RELOCATABLE
A provider of domiciliary care to older individuals and younger adults with physical disabilities/sensory impairments. Services provided by the company include personal care, night shifts, companionship, live-in care, respite and hospital to home. Se...
LEASEHOLD
26
|
Feb
|
Hanson-owned brickwork contractor closes down | BUSINESS NEWS
Brickwork firm Irvine-Whitlock, a subsidiary of building mat...
25
|
Feb
|
Fairstone secures further backing from PE firm TA Associates | BUSINESS NEWS
Acquisitive wealth management firm Fairstone Financial Manag...
24
|
Feb
|
Nestlé acquires recipe kit firm SimplyCook | BUSINESS SALE
Nestlé has strengthened its position in the e-commerc...
Sign up to receive our acquisition alert emails to get your FREE guide
01
|
May
|
Four Seasons care home group seeks buyer | ADMINISTRATION
One of the UK's leading care home groups, Four Seasons ...
06
|
May
|
Four Seasons care homes in likely creditor takeover | BUSINESS NEWS
The credit ratings agency Moody’s has issued a stark w...
24
|
Nov
|
Four Seasons Health Care faces being sold | BUSINESS SALE
Blackstones is to offer advice on financial and strategic op...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources