Care residence firm 4 Seasons Well being Care has gained a reprieve on a significant debt compensation which threatened the way forward for the agency.
The group, which takes care of 17,000 aged and weak residents, had been as a consequence of make an curiosity cost of £26m by Friday.
Nevertheless, 4 Seasons has solely £24.8m in money and is £540.2m in debt.
It stated the delay “ensures continuity of take care of 4 Seasons’ residents” and stability for its workers.
The Care High quality Fee, the UK’s well being watchdog, had been compelled to step in to make sure that 4 Seasons reached an settlement with its greatest creditor, the US fund supervisor H/2 Capital Companions.
It had stated: “By means of our Market Oversight operate, the Care High quality Fee has a accountability to advise native authorities if we consider that providers are prone to be disrupted because of enterprise failure.”
4 Seasons, which employs greater than 25,000 individuals, stated it goals to agree a restructuring plan 7 February subsequent 12 months and achieve approval for the technique by 2 April.
The care residence was purchased by the non-public fairness agency Terra Firma in 2012 for £825m, the vast majority of which was made up of bond debt which carries common curiosity funds.
Terra Firma bought the debt to H/2 Capital Companions and has subsequently provided at hand over the keys of the enterprise to the fund supervisor.
Robbie Barr, chairman of 4 Seasons, stated the corporate is “very happy to have reached a standstill settlement with H/2”.
He stated: “The standstill offers a interval of stability for the corporate and its stakeholders however most significantly for our residents, sufferers, their households and our workers.”