Leading care home provider Four Seasons Healthcare (FSHC) has proposed a £136m equity value injection as part of restructuring plans announced today.
As well as refinancing it more than £500m debt, the plans involve the addition of the equity value of 24 Four Seasons Group homes.
Justin King, Vice Chairman of FSHC owner Terra Firma, said: “We are now offering to inject a further £136m of value which, together with the proposals on debt, if agreed, will give the business the secure financial footing it needs to continue the good progress made by management in the last two years.”
FSHC said the proposals to creditors for the restructuring next month also include the rebasing of leasehold rents to market, as many homes were currently paying over market levels of rent.
As of 16 October, FSHC has also refinanced a loan facility with a new £40m loan.
Robbie Barr, Four Seasons Health Care Chairman, said: “The proposal being put forward to creditors by FSHC and its shareholders will, we strongly believe, provide certainty and continuity for our residents, patients, and the thousands of colleagues who deliver care across the business, whilst also protecting creditors’ value. There will be no impact on our operations, including our residents and colleagues, as a result of this announcement.”
Andrea Sutcliffe, CQC Chief Inspector of Adult Social Care said: “The announcement today will I am sure provoke some anxiety but is an important step in securing the long-term financial future of this company.”
She added the CQC would continue to monitor the situation through its Market Oversight responsibilities, adding there was no reason to believe that FSHC would be adversely impacted by the announced changes.