Four Seasons Healthcare and H/2 Capital Partners have reached a standstill agreement on a debt interest payment due this month.
The two parties said the agreement will allow time to reach a restructuring deal.
Robbie Barr, Chairman of Four Seasons, commented: “We are very pleased to have reached a standstill agreement with H/2; 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 standstill gives a period of stability for the Company and its stakeholders but most importantly for our residents, patients, their families and our employees.”
Spencer Haber, Chairman of H/2 Capital Partners, added: “We are pleased to have agreed the standstill which will help ensure continuity of care and stability for the residents and employees of Four Seasons.
“The standstill is the first step toward a successful restructuring to secure the longterm future of this vitally important care provider.”
Four Seasons reported earlier this month that it had made progress on a deal which will involve the transfer of ownership of Four Seasons to H/2 Capital and its other creditors (see BREAKING NEWS: Four Seasons edges closer to rescue deal).