Profits have reduced to a level where the combination of rent, annual interest payments of around £55m and maintenance bill of £24m are unsustainable when compared to the earnings generated by the business. Terra Firma has written off its entire investment in Four Seasons, although after the proposed restructuring would still own 80pc of the company.
Four Seasons is appealing to its lenders for help at the same time as battling its dominant bondholder in the High Court, however. The company is attempting to have the rights over its assets held by H/2 Capital Partners restricted.
The High Court heard that the City law firm Allen & Overy botched a legal process last year and accidentally granted the US hedge fund, headed by former Lehm…
Read the full article at: http://www.telegraph.co.uk/business/2017/10/17/debt-laden-care-homes-giant-four-seasons-makes-survival-appeal/