- H/2 Delivers to Four Seasons a Standstill on its December Debt Payments, Representing H/2's Third Offer of Forbearance in 60 Days
- H/2 Ensures that Standstill Not Impacted by Timing of Court Proceeding by "Agreeing to Disagree" on 24 Brighterkind Homes
- H/2 Extends Forbearance Period to Give Four Seasons Extra Time to Establish Independent Board with No Private Equity Sponsor Affiliation
- H/2 Transition Team is Available Immediately and Urges Four Seasons to Provide Access and Information, and to Execute Standstill Rapidly
LONDON, Nov. 30, 2017 /PRNewswire/ -- H/2 Capital Partners ("H/2") announces that it has delivered a standstill agreement with respect to Four Seasons' December debt payments. Upon its execution by Four Seasons, this standstill will ensure continuity of care for residents and stability for employees and all stakeholders. H/2's position has always been limited to that of a creditor. As a result, it has not had any input into or control over Four Seasons' decisions.
However, H/2 cares deeply about Four Seasons as an enterprise, its residents and the continuity and quality of their care, and its employees and the stability of the organization they depend on for making ends meet. Consequently, H/2 is again taking the unusual step of voluntarily proposing the deferral of its own interest, rather than extending several years of unproductive efforts in the short amount of time left before the 15 December interest payment that Four Seasons has announced it intends not to pay. Despite not receiving a response to its prior standstill offer for two full weeks, H/2 and its advisers decided the best way to benefit Four Seasons was to stay focused on efforts to identify alternative interest deferral ideas that should be acceptable to the various interests at Four Seasons, but still protective of stakeholders.
In addition, to ensure that the standstill is not impacted by the timing of the legal proceeding with respect to the 24 brighterkind homes, H/2 has proposed that the parties to the standstill agreement simply "agree to disagree" and execute the standstill without further delay.
H/2 believes that the complexity of Four Seasons' corporate structure may present challenges to timely decision-making and governance. H/2's standstill agreement further extends the forbearance period to provide extra time for Four Seasons to establish a fully-independent restructuring committee with no affiliation with its private equity sponsor. H/2 believes that this framework, in conjunction with a majority-independent board at Four Seasons, will be a critical step to ensuring a transparent, fair and ultimately successful restructuring process.
About H/2 Capital Partners
H/2 Capital Partners is an institutional investment manager that has completed over $40 billion of investments since its inception, including approximately $3.8 billion in healthcare. H/2 invests on behalf of leading institutional investors, including pension funds, sovereign funds, insurance companies, foundations, and other institutions globally. H/2 has a track record of working constructively with both private and publicly-listed companies in the U.K. and elsewhere to create financial stability and encourage long-term success for those businesses.