Four Seasons facing rising bills as hedge funds jostle for control
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.