Care home provider Four Seasons has secured the postponement of a large debt repayment in its battle to continue operating.
The firm, which looks after about 17,000 people and employs 25,000 staff, was reportedly due to make an interest payment of £26m by Friday but was said to have only £24.8m in cash.
The “standstill agreement” announced today has been agreed by Four Seasons and investment firm H/2 Capital Partners, which owns most of the company’s £520m debt.
In a statement today, the two companies said the agreement “ensures continuity of care for Four Seasons’ residents and enhances operational stability for employees and all stakeholders.”
The standstill period will be used to negiotate a restructuring of the company.
The Care Quality Commission’s chief inspector of adult social care Andrea Sutcliffe said she was encouraged by the agreement.
She added: ”Through our market oversight function, we will continue to closely track progress with the ongoing restructuring discussions until such time that they are satisfactorily concluded.
“Our regulatory responsibility is to advise local authorities if we believe that services are likely to be disrupted as a result of business failure.
“I would like to confirm at this point in time we do not believe that services are likely to be disrupted as a result of business failure.”