Four Seasons inks new standstill agreement with creditors

Source: Healthcare Digital

Date :31/10/2008 08:58:23

Senior creditors of Four Seasons Healthcare have extended a “standstill” deal over the care home group’s debt, giving them until January 22 to agree a restructuring of its £1.5 billion debt load.

The company’s owner, Qatari Investment Authority, which bought the business in a £1.4 billion deal two years ago, had been attempting to renegotiate its debt terms with backers from Royal Bank of Scotland and Morgan Stanley.

Its existing agreement was due to end tomorrow, November 1.

Reports had suggested that the Qataris would be willing to walk away from the business if a deal had not been agreed. However, the company has published a statement on its website stating that it had extended its current agreement on its debt until January.

It said the new agreement “will enable existing negotiations to continue towards agreeing a consensual restructuring of the group's debt in a way that is in the best interests of the business and all of its lenders.”