Private equity group Terra Firma has won a High Court battle over ownership of 24 Four Seasons Group care homes.
In a ruling on Friday, the High Court said 24 care homes run by brighterkind had been mistakenly pledged to Four Seasons’ lenders, led by hedge fund H/2 Capital.
Mr Justice Carr ruled that a “serious error” by the magic circle firm Allen & Overy led to the homes being included in bond security documents, which should now be rewritten to exclude them.
A spokesperson for Terra Firma said: “We are pleased the court has today reaffirmed our ownership of the 24 brighterkind homes, known as the ‘Santander Homes’ which sit outside the High Yield Bond Group.
“The 24 homes will continue to be run for the time being under the existing management service agreement with Four Seasons. This decision is unrelated to the restructuring process for Four Seasons which is being led by H/2 Capital Partners.”
The care home dispute had been cited as a potential obstacle to a rescue deal agreed in principle between Four Seasons and H/2 Capital last month (see Four Seasons and H/2 Capital agree rescue terms).
The deal, which will see H/2 Capital take over ownership of Four Seasons, is expected to be completed by July 31.