Four Seasons sale process delayed

TROUBLED care home operator Four Seasons Health Care has announced it is to defer putting the business up for sale.

The announcement follows a board meeting late last week, after which the company was expected to start a formal sale process as negotiations over the restructuring of its £1.5bn debt pile had passed the given July 6 deadline.

The Wilmslow-based company did not give a new deadline for agreement, but did say the deferral would only be for a “short period”.

It added that although all senior lenders had managed to reached agreement, a few junior payment in kind lenders had still not agreed to the terms of its latest proposed restructuring deal.

The junior lenders’ refusal to agree a deal has been seen by insiders as a strategy to leverage their position with other lenders and push for a better deal.

A statement said: “The decision has been taken in the light of the group’s senior lenders having recently reached agreement to support a consensual restructuring proposal.

“This leaves only a minority of the junior lenders who have not agreed to the restructuring terms. The deferral is expected to be for a short period only, during which the group’s board will keep the situation under constant review and determine the appropriate course of action for the group.”

Four Seasons, thought ot be worth around £800m, added that a consensual restructuring or a sale would have no impact on the group’s day to day operations, customers or trade creditors.

In January, Priory Group said it was interested in merging with Four Seasons, while Craegmoor Healthcare, which has 250 care homes and is backed by private-equity firm Advent International, has also expressed interest, according to reports.

Four Seasons, which looks after 15,000 people in 400 homes, had revenues of more than £400m to year end December 2008 with EBITDA over £100m.