Four Seasons Health Care - last-minute deal staves off administration

Fri, 15 Dec 2017

Four Seasons Health Care, the second largest care home operator in the UK, has struck a last-ditch deal with its major creditor in an attempt to avoid administration.

The company, which is struggling under £525 million of debt and faced a critical interest payment on Friday, was able to draw up a 'standstill' agreement with H/2 Capital Partner at the last minute.

A statement given yesterday confirmed they had reached a deal: "This standstill ensures continuity of care for Four Seasons' residents and enhances operational stability for employees and all stakeholders."

"The primary objective of a restructuring plan is to create a sustainable, long-term capital structure that best-serves residents, patients and employees."

The move will give the group more time to agree to a long-term restructuring, with H/2 set to take full control of the care homes operator – details of which still need to be agreed upon.

Until it is signed off, the future of 17,000 elderly residents across 343 homes is still in doubt.

Four Seasons chairman Robbie Barr said: "The board and I look forward to working closely with H/2 and their advisers on delivering a restructuring that will provide the right capital structure for the company's long-term needs."

The CEO of H/2, Spencer Haber, also said the agreement was a promising "first step" towards a successful restructuring, and described Four Seasons as a "vitally important care provider".

Subscribe today to read and search all our news, premium articles, business sale listings and buy/sell resources.

Latest Medical Businesses for Sale

Commercial Training for the Transport Industry - Leatherhead, Surrey

Asking Price: 
Location: South East

Incorporated in 1980, the company provides a comprehensive training services to the transport industry. For sale with or without a freehold office building. Loyal and longstanding staff. NP £45k...

Alternative Medicine - North West

Asking Price: 
Turnover:  £750,000
Location: North West

The business has a nationwide reputation and following at the cutting edge of the alternative medicine and complementary therapies heathcare sector. A solid profit business with 7,500 clients that is only for sale due to personal family reasons...

Care Home - North West

Asking Price: £1,750,000
Location: North West

Long established business for sale with a strong reputation with the local authority. Beautiful 28 bed freehold Georgian property set in approximately two acres of land. Excellent condition throughout. High occupancy levels (currently 100%). Highly trained, loyal workforce. Delightful rural location..

View More Medical Businesses for Sale >>