Interest payments on Four Seasons Health Care Group loans that were due by tomorrow (Friday) will not be paid as planned.
In an investor announcement, the care home operator’s owners Elli Finance (UK) Plc and Elli Investments Ltd said ‘their respective boards of directors have concluded that they will not be in a position to pay the coupons due under the notes on 15 June 2018’.
The two sets of loans total £525m.
The announcement added: ‘Related to this, Four Seasons and H/2 Capital Partners, on behalf of its affiliated investment funds (H/2) have also agreed an amendment and waiver to the terms of the existing £70m super senior facility agreement.’
In May, Four Seasons and H/2 announced they entered into an agreement to proceed with a restructuring of the group that will see ownership transfer to a new owner controlled by creditors.
The group said the restructuring will mean greater financial stability, thereby benefitting residents, patients, their families, the group’s employees and other stakeholders.