Lenders reject care home company's restructuring plan, says FT

The Financial Times reports today that UK care homes company Four Seasons Healthcare may be sold due to disagreements on restructuring proposals.

Four Seasons has been in discussion for a consentual restructuring with Hatfield Philips International (servicer to senior lenders) and other lenders. Hatfield was supposed to circulate a formal term sheet and lock-up agreement by 6 July.

By 19 June, the company acknowledged that should it and its lenders fail to reach an agreement on the restructuring proposal, they would look to formally begin an orderly sale of the group.

Four Seasons entered into a standstill agreement earlier this month until 22 July, in order to finalise its restructuring negotiations.

According to the FT, the company owes a total of £1.5 billion ($2.4 billion) in debt, with a complex capital structure of 11 tranches held by several firms, such as RBS, Marathon Asset Management, and Cheyne Capital.