Four Seasons holding firm in administration
A GUERNSEY holding company for one of the UK’s biggest care home groups – which serves around 17,000 patients and residents – has gone into administration.
Elli Investments is one of two holding companies for Four Seasons Health Care.
An application to the island’s Royal Court was required to put the Guernsey-registered company into administration.
Meanwhile, UK registered Elli Finance (UK] was also put into administration.
Four Seasons has 322 nursing and care homes, and employs around 20,000 people.
However, it has struggled under a reported £500m. debt pile – although the company yesterday moved to reassure clients and staff about its future.
Elli Investments and Elli Finance (UK) carry debt, with the decision to move them into administration designed to relieve pressure on the rest of Four Seasons and smooth the way to a planned sale of the business by the end of 2019.
Neither holding company own or run any sites directly, with Four Seasons operating companies continuing as normal.
The group also said that it had entered into a funding agreement which provides sufficient operational funding to ensure continuity of care for all of its residents and patients during the independent sales process period.
‘Today’s news does not change the way we operate or how our homes are run or prompt any change for residents, families, employees and indeed suppliers.
‘Our priority remains to deliver consistently good care,’ said Dr Claire Royston, group medical director of Four Seasons Health Care. It marks the latest stage in the group’s restructuring process and allows us to move ahead with an orderly, independent sales process.’
Richard Fleming, Mark Firmin and Richard Beard of Alvarez & Marsal Europe LLP, have been appointed as joint administrators to the two holding companies.
Mr Fleming said: ‘We are committed to ensuring the group delivers continuity of care as we work to undertake the independent sales process.
‘The group has continued to improve its quality ratings across their portfolio of homes and hospitals.
‘The group’s operations are fundamentally strong and a successful sales process will enhance those operations’ ability to thrive.’
Four Seasons was purchased by the private equity firm headed by Guernsey-based Guy Hands in 2012. Terra Firm Capital Partners purchased the group for £825m. but has since seen a £450m. writedown on its investment, as reported by the BBC.
Control of the group was also ceded to H/2 Capital Partners, a US hedge fund that holds a large amount of its debt.
Terra Firma and H/2 Capital Partners were contacted for comment.
