Four Seasons back from brink in £26m debt standstill

A debt standstill agreement has been reached on a £26m interest payment due to major creditors of care home group Four Seasons to prevent it falling into administration.

The Cheshire-based company – the UK’s largest care home provider – said the new agreement provides stability for the business and reassurance for its 17,000 vulnerable residents and 25,000 employees as well as hundreds of agency workers.

This follows a standoff between Four Seasons’ backers,  private equity firm Terra Firma run by tycoon Guy Hands and its biggest lender, the US hedge fund H/2 Capital Partners.

Four Seasons, H/2 and their respective advisers will now utilise the standstill period to facilitate an orderly transition and seek agreement on implementation terms for a restructuring on behalf of creditors, a statement said.

Robbie Barr, chairman of Four Seasons, said: “We are very pleased to have reached a standstill agreement with H/2.

“The board and I look forward to working closely with H/2 and their advisers on delivering a restructuring that will provide the right capital structure for the company’s long-term needs.

“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.”

Spencer Haber, chairman of H/2 Capital Partners, said: “We are pleased to have agreed the standstill which will help ensure continuity of care and stability for the residents and employees of Four Seasons.

“The standstill is the first step toward a successful restructuring to secure the long-term future of this vitally important care provider.”