Shropshire Star

Oswestry care home threat: Hopes of rescue deal fading

The company that owns a care home in Oswestry could be heading for administration as hopes of a rescue deal fade.

Published

Four Seasons, which runs Meadowbrook Care Home in Gobowen, is owned by Guy Hands’ private equity vehicle Terra Firma and is struggling under £525 million of debt and faces a critical interest payment on December 15.

However, Four Seasons is now likely to miss the payment, plunging into doubt the future of 17,000 elderly residents across 343 homes. It comes amid a failure by Terra Firma and Four Seasons’ principal creditor, American hedge fund H/2 Capital Partners, to thrash out a deal.

Terra Firma is urging H/2, run by Spencer Haber, to take full control of the group before it goes into administration as part of a debt restructuring.

But H/2 has rejected the proposal as the pair disagree over the terms of the restructure and over the ownership of 24 homes, which are subject to a court battle.

Should Four Seasons collapse into administration, it would be the biggest care homes failure since Southern Cross in 2011.