Four Seasons Health Care Appoints Independent Boards to Work Collaboratively with H/2 Capital Partners -- Four Seasons and H/2 to Assess Restructuring Alternatives in Light of the Group's Successive Downward Revisions to its Operating Performance
Four Seasons yesterday made important governance changes in light of successive downward revisions to its operating performance.
Independent Directors have been newly appointed to several of the Group's key Boards of Directors, such that those Boards are now independent.
Investment funds affiliated with H/2 Capital Partners ("H/2") have agreed to further extend the deferral of the interest owed to them on the Group's debt.
H/2 has also today funded £5 million in furtherance of continuity of care and operational stability.
With H/2's continuing support, the Group's newly-independent leadership will engage with H/2 immediately in assessing possible restructuring alternatives.
Day-to-day operations continue unaffected.
Four Seasons ("Four Seasons" or the "Group") yesterday made certain important governance changes which result in the Group now being led by independent Boards. Newly appointed to the Boards of Directors are:
David Edmonds CBE, a highly-experienced Non-Executive Director with significant healthcare and regulatory expertise, including previously serving as a Non-Executive Director of Barchester Healthcare Limited and as a former regulator across both the legal services and communications sectors; and
Iain Lynam, a seasoned restructuring professional with extensive health and social care experience across both the NHS and the independent sectors.
In parallel with these appointments, certain Board members associated with Terra Firma have stepped down. These directors are Robbie Barr, Peter Dixon, Ryan Macaskill and Greg Newman.
Continuing a multi-year trend of challenging operating results, the Group has downwardly revised its stated forecast for current-year EBITDA multiple times.
In addition to extending the interest deferral period, H/2 today funded £5 million to the Group, which together with substantial amounts previously funded by H/2, supports continuity of care and operating stability. The Independent Directors and H/2 reaffirm their continuing support to Four Seasons' residents, patients, employees and other important stakeholders.
Allan Hayward, Independent Director of the Elli Acquisitions Limited Board of Directors, said: "I am very pleased that we have been able to extend independent governance and leadership further across the Group. This can only be beneficial in securing a successful restructuring of this important enterprise."
Spencer Haber, Chairman of H/2 Capital Partners, commented: "The challenging task of rebuilding Four Seasons begins today with fresh momentum. We are ready to get to work immediately with the reconstituted, Independent Boards to develop a restructure plan grounded in reality, moving on to the vital job of restoring Four Seasons to its proper state to serve its residents, their families, its employees and government stakeholders."
(1) FY18 forecast EBITDA calculated using KPIs from Elli Investments Limited Information Statement, as reported in the announcement dated 28 February 2017.
(2) FY18 forecast EBITDA calculated using respective Elli Investments Limited Information Statements, as reported in the announcements dated 26 January 2018, 9 May 2018 and 28 September 2018 respectively.
Links to the above referenced Information Statements can be found on the Group's website: