Community Care Market News : News Stream Article.

News Stream Article

Could Four Seasons swerve out of sale?
Community Care Market News - The future of Four Seasons Health Care remains up in the air today (13 July) after the company announced that the decision to launch a sales process following last week's collapse of restructuring talks has now been deferred.

A statement released by the Four Seasons' board said that an agreement had been met with senior creditors which means that there is still hope to secure a debt-for-equity swap.

It is understood that discussions held last Friday resulted in Credit Suisse agreeing to defer until next year a £17m payment due from Four Seasons, and in return for this support for restructuring over sale will get as yet undisclosed 'improved terms'.

With a senior creditor now on board, junior lenders are set to feel the pressure to sign on intensify. It is believed that these lenders are owed more than £200m through so-caleld payment in kind (PIK) notes. If a sale is forced many lenders could lose out significantly. However, this latest turn of events, if successful, would result in the company falling into the hands of its lenders rather than being put up for sale at a time when it may have only raised a price tag amounting to some 50% of its debt pile.

For further coverage see the forthcoming July issue of Community Care Market News.

Justin Merritt (13/07/2009)

Contact Justin Merritt on
justin@laingbuisson.co.uk
Tel: 020 7841 0049