Four Seasons, now the UK’s largest independent care home operator are negotiating the restructure of their £780m debt and are hoping to raise £230m via their shareholders.
Four Seasons Healthcare took 140 homes from ashes of Southern Cross to make them the largest provider of elderly care in the UK.
The debt, which was deferred by creditors in September 2010, is due to be paid in September this year;
“We are going through a process of strategic options,”
“We are considering with shareholders the refinancing of the debt. We have two or three different scenarios and we are confident [of refinancing] before the deadline.”
Pete Calveley, chief executive of Four Seasons Health Care Group commented last year.
Four Seasons Healthcare, the operating subsidiary of Four Seasons Health Care Group, recorded a £12.1m pre-tax loss in 2010, down from a £928,000 profit the year before, according to its latest accounts. The company cited a backdrop of “declining occupancy across the industry” and government spending cuts. (Financial Times, October 4, 2011).
The Care Quality Commission, the government body that regulates conditions in care homes, approved the takeover of the 140 care homes previously run by Southern Cross.
Last year the GMB Union asked the government to consider the transfer of homes and the financial stability of Four Seasons to avoid another care group failing and thereby putting the elderly residents at risk of another Southern Cross situation.
According to the Government the Care Quality Commission should ensure that any operator is in a financial position to deliver care.
Rothschild and Gleacher Shacklock independent financial advisory groups expect to have agreed on a solution with investors and creditors within two months and refinancing should be completed by the end of July. This includes an agreement from Royal Bank of Scotland which took a 40 per cent stake in the company in exchange for writing off debt in 2009.