Private equity owner Terra Firm has agreed to cede control of Four Seasons Health Care (FSHC) to the provider’s main creditor H/2 Capital.
Terra Firma said it would accept the restructuring proposals put forward by H/2 Capital this week (see BREAKING NEWS: Four Seasons creditor issues debt restructuring counter proposals).
Terra Firma said: “Their [H/2 Capital’s] offer of forbearance and a deferral of the interest payments through to 1 March 2018 should provide sufficient room for all stakeholders to now engage with the FSHC Board in pursuit of a consensual solution.
“We stand ready to agree the transfer of our interest in the High Yield Bond Group to the creditors for a nominal sum as part of this restructuring.”
The H/2 plan includes a £135m cash equity injection to reduce debt and assume other ownership responsibilities.
The deal also includes the installation of a new Board of Directors and the replacement of current Chairman Robbie Barr by former Barchester Chair Baroness Margaret Ford.