H/2 Capital Partners Urges Four Seasons Health Care Group to Execute Deferral and Forbearance Agreement following the Group's Apparent Rejection of H/2 Stakeholder Plan of 7 November 2017

- H/2 Urges Four Seasons Health Care to Execute the Deferral and Forbearance Agreement Sent to Them by H/2 to Provide Continuity of Care to Residents

- H/2 Understands that Its Stakeholder Plan Announced on 7 November 2017 (the "Low Leverage Stakeholder Plan") Has Been Rejected

- If this is the Case, H/2 Urges Four Seasons to Work With H/2 In Formulating Consensual Alternatives

LONDON, Nov. 21, 2017 /PRNewswire/ -- H/2 Capital Partners ("H/2") announces that it has not received any formal response, written or verbal, from Four Seasons Health Care regarding the detailed Low Leverage Stakeholder Plan that H/2 put forward on 7 November 2017.  The Low Leverage Stakeholder Plan proposed major improvements to the Group's restructuring proposal announced on 17 October 2017.  The Low Leverage Stakeholder Plan reflected a carefully considered and integrated proposal that H/2 believed best served the interests of the Group, its residents, their families, the Group's employees and other important government and private stakeholders.

Based on subsequent press reports and discussions between advisers to H/2 and the Group, H/2 and its advisers believe that the Low Leverage Stakeholder Plan has been rejected.  H/2's Low Leverage Stakeholder Plan represented a carefully balanced combination of key elements, such as a large new infusion of equity and a substantial debt-for-equity swap, in an integrated proposal for the whole Group.  Like Four Seasons' own proposal of 17 October, H/2's plan explicitly included all of the Group's homes as an essential component.  While H/2 has not received an alternative proposal from the Group, it stands ready to work together with the Group in a collaborative attempt to formulate alternative consensual solutions.

Four Seasons has publicly stated that it no longer has adequate financial resources to be able to meet its interest payments on 15 December.  To ensure continuity of care for residents and the stability of the Group's operations, H/2 voluntarily proposed a deferral of those interest payments, providing the Group with a written deferral agreement two weeks ago.  H/2 urges the Group to finalize the interest deferral to ensure its own stability and to provide sufficient time to formulate new alternatives for its orderly restructuring. 

H/2 is committed to working alongside the Group to evaluate any constructive alternatives that ensure continuity of care for its 17,000 residents, treat creditors and other stakeholders fairly, and provide stability of operations and peace of mind for its 25,000 staff. 

Definitions

In this announcement, references to the "Group," "Four Seasons Health Care" or "Four Seasons" include FSHC Group Holdings Limited and its subsidiaries, including brighterkind (PC) Limited and the Notes Issuers.  The "Notes Issuers" are Elli Investments Limited and Elli Finance (UK) plc.

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.

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