Senior Care Homes News

Debt Talk Initiated by Four Seasons Care Homes

Published 14/02/2012

Four Seasons, which is the United Kingdom's biggest provider of care homes, and has acquired a lot of the properties belonging to Southern Cross did reveal that it is presently in talks in order to generate money to pay off its existing debts. Four Seasons needs to pay back about GBP 780m of the debt they are in by this September. However, it is very unlikely they will be able to gather up this much money from any lenders ever again. It has taken the course to enter talks with some investors to see if they can attract any new investments that go up to GBP 250 million. GMB has given the company advance warning that they will continue to have financial woes. “We warned them when Southern Cross was acquired in the autumn that there was going to be a great risk to the many residents and employees. They were jumping out of the frying pan and going into the fire,” a member of GMB, J. Bowden confessed to the BBC. But despite this, the company stated that its negotiations with promising investors, which includes the present shareholders, are definitely progressing along in a positive manner. “I don't feel confident that I may get the whole amount I need to pay this debt off,” said Peter Calveley to the BBC. Caveley is the chief executive for Four Seasons. Four Seasons may definitely be calling on all existing investors, which includes Royal Bank of Scotland, which is state-owned, to increase their stake. This will potentially leave the taxpayer with some majority-ownership as part of the United Kingdom's biggest care home group. There hopes to be a deal agreed upon by March and finalized by the summer hopefully. Mr. Calveley states, however, no matter if the financial markets do go down, this firm will not be closing down any homes.

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