Four Seasons facing rising bills as hedge funds jostle for control

 
Billy Bambrough
Follow Billy
Four Seasons private equity firm Terra Firma could lose control of the care home operator
Four Seasons private equity firm Terra Firma could lose control of the care home operator (Source: Getty)

Unsustainable debt and a looming £26m interest payment have thrown the future of care home operator Four Seasons in to doubt.

Last week it was revealed Four Seasons lost £27.4m in the three months to the end of September but must pay £52m interest on its debt every year.

It currently has cash reserves of just £51.3m but has to make an interest payment of £26m this week.

The company, owned by private equity firm Terra Firma, is understood to be in talks over restructuring its debt pile – now a whopping £515m – and that US hedge funds are circling the business.

Terra Firma boss Guy Hands could lose control of the care operator as a result of a deal.

Four Seasons Health Care has some 20,000 mostly elderly and vulnerable residents across the country and the government is on alert over the effects of a potential collapse.

Related articles