Four Seasons in High Court finance dispute

A High Court row with lenders is threatening debt restructuring talks at Four Seasons, The Sunday Telegraph reported.

The broadsheet said Four Seasons had been drawn into a row with its lenders over security obligations that it said were accidentally imposed due to an administrative error over a missing bond document.

Four Seasons said lawyers had mistakenly granted bondholders extra security over a share of its care homes for private payers, including assets held by brighterkind.

Story continues below
Advertisement

A Four Seasons spokesperson said: “This is a technical process to clarify legal clauses within the 2016 financing documentation.  Four Seasons Health Care Group Holdings Limited is confident that it will succeed with the rectification based on the evidence which will be provided to the courts. The process will have no impact on day to day operations in Four Seasons Group homes.”

The Telegraph said the legal battle could derail debt restructuring talks at the provider, whose debt stands at more than £500m.

Analysts have warned that the provider will require financial restructuring this year in order to avoid insolvency.

Senior Adviser at Opus Business Services Nick Hood recently aired his concerns over the level of debt being taken on by the UK’s top care home providers (see Bupa acquisition fuels debt burden concerns).

Authors
TAG CLOUD ,

*

Related posts

Top