Four Seasons Health Care has been given a reprieve over a major debt repayment which threatened the care home company’s future.
The group, which looks after 17,000 elderly and vulnerable residents, had been due to make an interest payment of £26 million by tomorrow. It had only £24.8 million in cash and is £540 million in debt.
The Care Quality Commission (CQC), the UK’s health watchdog, had been forced to step in to ensure that Four Seasons reached an agreement with its biggest creditor, the US fund manager H/2 Capital Partners.
Robbie Barr, chairman of Four Seasons, said the company is “very pleased to have reached a standstill agreement with H/2”.
He said: “The standstill gives a period of stability for the company and its stakeholders but most importantly for our residents, patients, their families and our employees.”