William Eichler 09 February 2018

Care provider Four Seasons temporarily bailed out

Care provider Four Seasons temporarily bailed out  image

The struggling care provider Four Seasons has today signed a deal with a hedge fund which will see £70m invested to enable it to keep operating.

Four Seasons Health Care, one of the largest private social care providers in the country, has been struggling to stay afloat amid the ongoing social care crisis.

Its estimated net debt stands at around £525m.

The US-based hedge fund H/2 Capital Partners today agreed to increase the company’s term loan from £40m to £70m.

Four Seasons, which runs over 300 care homes with 17,000 residents, remains in the formal control of Terra Firma Capital Partners.

However, last December H/2 agreed to defer a £26m interest payment which gave it effective control over the company.

Today’s deal means the hedge fund has even more control over the social care provider.

It is likely a full restructuring plan will be agreed in March, which will see H/2 take full control of the chain.

‘We are very appreciative of H/2’s willingness to consider expanding its already substantial commitment to Four Seasons Health Care and for the continued support of all parties in pursuit of a consensual agreement,’ said Four Seasons chairman Robbie Barr.

‘Working together to close the facility over the next two to three weeks, we believe that this incremental liquidity and initial steps toward a revised governance structure lay the foundation for a consensual restructuring that benefits all stakeholders, and in particular provide continuity of care for our residents.’

According to recent Care Quality Commission (CQC) inspection data, out of 167 Four Seasons homes, 35% were rated as ‘inadequate’ or ‘requiring improvement’.

Four Seasons is not alone. Central Government cuts have led to social care spend by councils being dramatically slashed, which has impacted upon private care providers.

Recent analysis by the consumer watchdog Which? recently revealed half of England’s large care home providers have at least one in four failing homes in their network.

SIGN UP
For your free daily news bulletin
Highways jobs

Chief Finance Officer

Calderdale Metropolitan Borough Council
£91,209 per annum
You will join a high performing, thriving Council, which developing next practice in health and care integration and playing a lead role in... Calderdale, West Yorkshire
Recuriter: Calderdale Metropolitan Borough Council

Commercial Customer Manager

North Yorkshire County Council
£39,880 to £43,857
Are you someone who is innovative and has the drive to increase revenue for the Council whilst ensuring excellent service provision to our customers? Northallerton, North Yorkshire
Recuriter: North Yorkshire County Council

Social Care Lead Officer

Sandwell Metropolitan Borough Council
£35,745 - £40,876 pro rata per annum
A vacancy has become available for a part time Social Care Lead Officer, to cover in... Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Communications & Corporate Affairs Manager

Sandwell Metropolitan Borough Council
£47,845 - £50,900 per annum
To apply for this role please upload your most recent CV that sets out your relevant experience against the job description. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Career Grade Planning Officer

Royal Borough of Greenwich
£27978 - £37722 per annum + n/a
Career Grade Planning Officer - West Area and East Area Team The Royal Borough of Greenwich continues to faces an unprecedented growth agenda in terms England, London
Recuriter: Royal Borough of Greenwich

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue