Restructuring talks between Four Seasons Healthcare and leading creditor H/2 Capital have been extended in order to allow more time for a deal.
Four Seasons announced last week that the two parties had agreed to put back a deadline for an agreement, which was due to expire today, to 15 May.
The two sides have also agreed to move the deadline to conclude a deal from 1 June to 31 July.
H/2 Capital agreed to provide a £70m funding lifeline for Four Seasons in February in order to repay existing debts and offer interim funding while talks continued (see Four Seasons confirms £70m H/2 Capital lifeline).
The talks continue to be complicated by a High Court battle over the ownership of 24 brighterkind homes that Terra Firma claims were mistakenly pledged as security to bondholders due to an error by its lawyers Allen & Overy.
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).
The agreement is expected to result in current Four Seasons chairman Robbie Barr being replaced by former Barchester chair Baroness Margaret Ford.