Four Seasons largest creditor H/2 Capital has issued a series of proposals that it argues will restore the financial stability of the indebted care provider.
The proposals are in response to a plan put forward by Four Seasons’ private equity owner Terra Firma in October (see BREAKING NEWS: Four Seasons reveals restructuring proposals).
Baroness Margaret Ford, former Chairman of Barchester Healthcare, said: “The plan for stakeholders put forward today by H/2 Capital Partners provides stability for Four Seasons Health Care, its residents, their families and its employees. If implemented, it should ensure the long-term sustainability of this important care provider.”
The measures include a £247m reduction in Four Seasons’ debt compared with the £77m reduction proposed by Terra Firma.
They also include a £25m cash injection for home improvements along with a £15m reward programme for Four Seasons’ employees. Employees would also be granted a 10% stake in the business.
H/2 Capital also proposes a greater reduction in interest rate payments on Four Seasons’ debt than that put forward by Terra Firma.
The plans also entail the appointment of a new Board of Directors with Baroness Ford replacing current chair Robbie Barr.
A Four Seasons spokesperson commented: “The Four Seasons Health Care High Yield Bond Group welcomes the fact that H/2 Capital has indicated its willingness to engage in restructuring discussions with the Group.
“Residents, their families and the many employees who deliver exceptional care across the business must continue to be the main consideration during this restructuring process.
“H/2 Capital’s announcement will not have any impact on our day to day operations including our residents and colleagues.
“The Board will consider the proposals with a view to reaching a conclusion that ensures the long term stability of the Group.”