Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Southern Cross announces transfer plan

  • Comment

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.

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.