Terra Firma has urged leading creditor H/2 Capital and other bondholders to take over Four Seasons as stalemate between the two parties threatens the future of the UK’s largest care home provider.
In a statement released yesterday, Terra Firma asked its creditors to take over Four Seasons 343 care homes for a nominal sum with immediate effect.
Terra Firma said the offer was designed to ensure stability ahead of the December 15 deadline when Four Seasons is due to make an interest payment on its debt (see BREAKING NEWS: Four Seasons confirms it will be unable to pay debt interest).
Terra Firma has previously requested that its creditors agree to a standstill agreement to allow Four Seasons to defer on its debt payments until March. It alleged progress on the standstill agreement was being held up by H/2 Capital.
The Four Seasons’ owner accused H/2 Capital of being unwilling to engage in talks on “numerous occasions”, adding there had been a complete breakdown in communication between April and its restructuring proposal on October 17. Terra Firm even accused H/2 Capital of blocking its emails and refusing requests for face to face meetings.
Terra Firma said its agreement to hand over its homes was subject only to a guarantee for 24 homes which lie outside the group which are subject to a court case next year.
The Four Seasons owner added: “To date, H/2 Capital Partners has rejected all restructuring proposals and an offer of a standstill presented to them. Instead, H/2 Capital Partners has made three proposals to the company. We understand that Four Seasons and H/2 Capital Partners have discussed such proposals, but have been unable to reach an agreement.”
H/2 Capital has been approached for comment.