Allied Healthcare is planning to restructure its finances due to a ‘highly challenging environment’ that has placed pressure on the company.
The homecare provider, which cares for 13,500 elderly and vulnerable patients in the UK, is pursuing a company voluntary agreement (CVA) as part of a business plan to help ensure continuity of care across its operations.
Media reports suggest that rising labour costs and a potential £11m bill for backdated ‘sleep in’ payments are impacting the company.
A statement on the provider’s website said: ‘The proposed CVA will not impact on the safe continuity of care that Allied Healthcare provides across the UK.
‘Under the CVA plan, there would be no redundancies or branch closures as a result of its implementation.
‘Allied Healthcare will continue to trade safely and it remains business as usual for Allied Healthcare employees and customers.’
A CVA is an approach that a company can take to restructure its financial arrangements. It involves the business agreeing a revised schedule of repayments with its creditors so that the company can continue investing in its services and people.
Allied, which has contracts with 150 councils and employs more than 8,500 people, is owned by private equity firm Aurelius.
It expects to file for the procedure today (Monday).