Care homes debt reshuffle

BRITAIN’S second-biggest care homes operator has put forward proposals for a partial debt for equity swap as part of a major restructure.

Four Seasons, owned by City financier Guy Hands’s private equity vehicle Terra Firma, is in talks over plans for lenders to take control of a 20pc stake in the group in exchange for waiving some of their debt. The com- pany, struggling under £525m of debt and facing interest payments of more than £50m a year, is also proposing to restructure its borrowings.

This would cut debt by £115m, and half of the interest payments on £350m of its borrowings could be rolled up and paid as a lump sum in 2021, which would give it breathing space to invest in the business.