Leading creditor H/2 Capital has urged Four Seasons to respond to its rescue plan proposals issued at the beginning of November.
H/2 Capital said it had not received any formal response to the proposals and had, therefore, concluded the plans had been rejected.
The US investment firm said: “Based on subsequent press reports and discussions between advisers to H/2 and the Group, H/2 and its advisers believe that the Low Leverage Stakeholder Plan has been rejected.”
The proposals, which were issued in response to Four Seasons owner Terra Firma’s rescue plan, included significant new equity for the business as well as a lower level of leverage (see BREAKING NEWS: Four Seasons creditor issues debt restructuring counter proposals).
Responding to the H/2 Capital statement, Four Seasons said its proposals had not been rejected.
The care provider said: “On the Q3 results investor call of 15 November the Notes Issuers welcomed key aspects of H/2’s proposal of 7 November 2017 and have been working with H/2, via its advisers, to put in place a deferral and forbearance agreement while the financial restructuring continues.”
Four Seasons has confirmed that it will not be able to pay interest on its debt in December (see BREAKING NEWS: Four Seasons confirms it will not be unable to pay debt interest).
Four Seasons added: “The Notes Issuers are very focused on finding an expedited solution and have not rejected any proposal, and have been clear that any proposal along the lines proposed by H/2 can only be executed with an agreement on terms by both the equity and the debt holders. We understand that this agreement does not currently exist.
“Whilst conversations continue between stakeholders, the focus remains on providing high quality care to our residents and patients working closely with the Care Quality Commission and other national regulators in order to ensure that day to day operations continue unaffected.”
Andrea Sutcliffe, CQC’s Chief Inspector of Adult Social Care, 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.
“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.”