One of the UK’s largest care home operators has won an extra £40m funding to help it tick over as the group prepares for a sale.
US hedge fund H/2 Capital Partners, a major shareholder in the group, will increase its financing for Four Seasons Health Care from £70m to £110m and extend it until 3 June.
The cash injection will allow Four Seasons to sure up its business until it is able to find a buyer.
“The Facility’s extension and upsize provide enhanced continuity of care and operational stability over the remainder of the period that the Four Seasons Group expects to complete its restructuring,” the firm said.
It will also cover expenses of some of the company’s creditors, it added.
Four Seasons was plunged into debt after a £825m takeover by Terra Firma Capital Partners in 2012.
It has avoided bankruptcy several times in the past year after missing a series of deadlines to find a restructuring deal.
Last year, the group's adviser PJT Partners left as it felt unable to do its job following a series of changes on the board, Sky News reported at the time.
The company’s 25,000 employees look after 17,000 residents.