A £70m funding package has been agreed to keep leading care home provider Four Seasons afloat until a rescue deal is agreed with leading creditor H/2 Capital.
The financial support from H/2 Capital, which is expected to be announced today, will be used to repay existing debts and provide interim funding as a deadline for a long-term rescue deal has been extended for a further two months, Sky News has revealed.
A provisional restructuring deal led by H/2 Capital, which was scheduled for today, has been delayed until mid-April with the deadline for a final deal now expected in June, sources said.
The deal between current owner Terra Firma and H/2 Capital has been delayed due to a dispute over the ownership of 24 homes currently owned by Four Seasons group care home provider brighterkind.
The final agreement is expected to be broadly in line with the takeover proposals outlined by H/2 Capital in November (see BREAKING NEWS: Terra Firma agrees to H/2 Capital’s Four Seasons rescue plan).
This will see current Four Seasons chairman Robbie Barr replaced by former Barchester chair Baroness Margaret Ford.
The current debt standstill agreement between the two companies lasts until the end of next month (see BREAKING NEWS: Four Seasons and H/2 Capital reach debt standstill agreement).
Meanwhile, speculation has been rife in recent months of further takeovers of the UK’s leading care home providers.
Runwood Homes firmly rebutted sale rumours in November (see EXCLUSIVE: Runwood Homes dismisses ‘fake news’ sales rumours), while Reuters reported last week that British buyout firm Bridgepoint was seeking a buyer for Care UK’s residential care business. Care UK declined to comment when contacted by CHP.