Four Seasons appoints Deutsche Bank
WILMSLOW-based Four Seasons Health Care has finally appointed Deutsche Bank to its advisory team, following widespread speculation.
Last week, a spokesperson for the care homes operator told The BusinessDesk it was still only considering the appointment of an investment bank to help the group explore all possible outcomes for resolving its debt situation.
He added that it was not in discussions with any other party about a possible sale or merger, and again confirmed today that the appointment does not trigger a sale process.
A statement said: “Deutsche Bank AG, London branch will assist the group to explore options for resolving its capital structure situation, including amongst others, capital market solutions that could support the group’s restructuring proposal and the prospects for a sale process.
“All options will be considered alongside the continuing negotiations with the Group’s lenders, which the Group has been seeking to progress towards a consensual restructuring of the debt.”
It added: “A consensual restructuring of its debt that delivers a robust capital structure remains the group’s preferred solution. However, it is now appropriate to explore and develop alternative strategic options, including a sale of the group, in the event that agreement on a consensual restructuring cannot be reached.”
The company has a complex capital structure with many tranches of debt and has been in default of its £1.57bn of loans since last September.
In February the junior creditors of Four Seasons Health Care increased pressure to bring forward the financial restructuring of the company.
They served it with a 90-day default notice, bringing the deadline of a standstill agreement held with senior creditors forward by 11 weeks to May 5.
