Leading care home provider Four Seasons has said talks on a restructuring deal with its leading creditors have made progress.
An announcement of an agreement with leading creditor H/2 Capital over a debt interest payment which is due to be paid this month is expected imminently.
Four Seasons previously admitted that it will not be able to the debt interest payments (see BREAKING NEWS: Four Seasons confirms it will be unable to pay debt interest).
News of a possible breakthrough has allayed fears that Four Seasons is on the brink of collapse after talks between owner Terra Firma and H/2 Capital became increasingly acrimonious in recent weeks with both sides blaming the other for a lack of progress towards a deal (see Four Seasons talk descend into acrimony).
CHP understands that the deal will involve the transfer of ownership of Four Seasons to H/2 Capital and its other creditors.
The deal is likely to be along the lines of the rescue plan submitted by H/2 Capital at the beginning of November (see BREAKING NEWS: Four Seasons creditor issue debt restructuring proposals).
CQC’s Chief Inspector of Adult Social Care, Andrea Sutcliffe, said: “The Care Quality Commission has been clear that people using any adult social care service, their families and carers, need to have the confidence that the service provides good quality care which can be sustained into the future.
“Through our Market Oversight function, CQC has a responsibility to advise local authorities if we believe that services are likely to be disrupted as a result of business failure. We continue to closely monitor developments of what is a dynamic situation. We have encouraged relevant parties to reach agreement as soon as possible in the interests of people using these services and staff. The nature of that agreement is for the relevant parties to determine.
“I would like to confirm at this point in time we do not believe that services are likely to be disrupted as a result of business failure.”