The Guy Hands-owned buyout firm has reached a deal to remove a clause in the care home company's loan agreements requiring profits to be above a stated threshold.
Four Seasons’ earnings plummeted last year as it struggled with waning profits and inflating costs in the sector. As a result the company has had difficulties bearing its £500m debt burden, which was taken on after Terra Firma bought the company for £825m in 2012. The private equity firm hired Blackstone late last year to advise on a new strategic plan for the care homes operator. It is thought this latest move will allow Terra Firma to proceed with its plan to divide the company into three separate business without fear of breaking covenants.
Terra Firma declined to comment.