Ownership threat to care home firm

CARE home operator Four Seasons is facing administration as its main lender and private equity owner clash in a £136m tug of war.

The legal row centres over whether 24 care homes are part of Four Seasons.

US hedge fund H2 Capital, which owns most of Four Seasons’ £525m bond debt, claimed it had control of the assets, which were bought by Terra Firma in 2014.

However, private equity firm Terra Firma, which owns Four Seasons, rejects this. It bought the 24 extra care homes separately and says they are not part of Four Seasons, but were mistakenly added to it by lawyers.

The firm has applied to the High Court to regain control of the homes next year.

But with Four Seasons refusing to pay a £26m interest payment due next month, and H2 and Terra Firma failing to agree a restructuring deal, H2 could force Four Seasons into administration before then.