One of the UK’s leading care home operators, Four Seasons Healthcare, has agreed a standstill with its lenders after failing to make a £1.5bn debt repayment that was due on Monday. The standstill agreement prevents creditors from foreclosing and tipping the company into administration.

It will last two months, until the end of October and give the company breathing space to continue talks with lenders on a restructuring of its debt.

The company continues to try to reach a consensual solution with its lenders, which include among others Royal Bank of Scotland, Cheyne Capital, Marathon Asset Management and a Morgan Stanley Real Estate run fund, which are some of its senior ranking lenders.

Financial Times