The UK’s largest care home group Four Seasons is expected to record more disappointing results tomorrow placing its future in doubt.
The Belfast Telegraph reports that the further bad news means that the operator now risks falling into the hands of its creditors.
A source told the Press Association: “The results are unlikely to show any improvement in its performance, and US hedge funds in particular are circling in increasing numbers with a view to getting a piece of the action.
“If there’s not a foreign buyer that steps in, which seems unlikely, it will go to the wolves by October or November.”
Four Seasons’ lenders include US investment firms HCP and H/2 Capital Partners.
The operator, which houses 20,000 elderly residents in 450 homes, has been hit by a fall in local authority fees, rising costs and the introduction of the national living wage.
Hedge funds are reportedly making moves to buy into the operator’s £525 million debt in return for a stake in the business.
The indebted group is owned by City financier Guy Hands’ private equity vehicle Terra Firma.
Credit ratings agency Moody’s has said the group’s financial structure is “unsustainable”.