‘Good progress’ made in talks to rescue Four Seasons

CARE home group Four Seasons, which has 58 locations in Northern Ireland, may yet be saved from administration amid talks with its creditor over its restructuring.

The company, which has around 3,000 beds here with an average occupancy level of 90%, has been struggling under £525m of debt and faces a critical interest payment on Friday.

The chain is owned by Guy Hands’ private equity vehicle Terra Firma.

Terra Firma and Four Seasons’ principal creditor, American hedge fund H/2 Capital Partners, are involved in talks.

A spokesman for Four Seasons said: “Four Seasons Health Care is in constructive discussions with H/2 Capital and making very good progress towards an agreement on restructuring.”

It’s understood all parties involved have acknowledged the importance of maintaining continuity of care for residents, and say they are committed to a consensual solution.

A Terra Firma spokesman had previously said: “There is no reason to put Four Seasons into administration. We call on H/2 Capital Partners, who have acquired their debt at a discount since 2015, to stand by its commitment to find a consensual outcome for the benefit of employees and residents and head off the risk of the obvious disruption that administration would trigger.”

It is understood that H/2 bought its debt holding in Four Seasons for approximately £256m, while the enterprise value of the care operator is thought to stand in the region of £700m. But Northern Ireland care home deal adviser Mark O’Kane, of O’Kane Commercial, said residents were unlikely to be displaced even in the event of a collapse of Four Seasons.

He said that in the case of former operator Southern Cross, which collapsed in 2011, there had been a “seamless transfer” to new ownership of homes. It operated 25 facilities here.