Failed care-home operator Southern Cross Healthcare has detailed plans to hand over its homes to its landlords or new operators.
The group will transfer its back-office functions to a new company called HC-One, owned by major Southern Cross landlord NHP, which will continue to provide support to some landlords and care providers after Southern Cross’ 700-plus homes are transferred.
A tranche of the company’s properties are due to transfer back to their landlords at the beginning of next month, with the remainder set to be handed over in late October or early November.
Southern Cross said the planned “orderly wind-down” of the group’s operations followed the granting of a waiver by United Kingdom Listing Authority removing the need for shareholder approval for the move.
It said the restructuring involved “the assignment of the group’s operating leases of care homes to its landlords and the transfer of the related business and assets for the care operations of those homes - including back office support - to its landlords or alternative care providers”.
The firm confirmed that a meeting of landlords last week refused to give shareholders the opportunity to approve the restructuring plan.
UKLA approved its waiver on a shareholder vote on the grounds that the restructuring plan was the “only solvent option” for Southern Cross.
The company’s full statement can be read here.