Paradise Papers detail multi-million care home loan by Terra Firma

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A DEAL that could have seen locally-based private equity company Terra Firma paid £890m. from Britain’s second largest care home operator has been outlined by the Paradise Papers.

Guy Hands, the founder and current chairman and chief investment officer of Terra Firma.

But the private equity business has said it has no intention of recovering that money because of the financial straits the operator is in.

Four Seasons Health Care, which is known to have debt problems, took a £220m. loan – with an annual interest rate of 15% for 10 years – from its owner, Terra Firma, when it was purchased.

The Guardian newspaper says the deal would see this money recovered four times over.

However, Terra Firma said that it had since written off the debts.

It added that it had invested approximately £450m. of its own money into the operator without recovering a ‘single penny’.

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