Last checked at 12 May 2011 16:46
Thursday 12 May 2011
Southern Cross Healthcare Group PLC
('Southern Cross', 'the Company' or 'the Group')
Meeting with Landlords
Southern Cross, the UK's largest care home operator, announces that it has held a second group meeting with its landlords today as part of the ongoing financial restructuring of the business. The meeting was attended by landlords representing over 90% of its homes.
The Company put forward a request for a 4 month 'Summer Platform' to allow time to develop further its proposals in what is a complex situation. As part of the Summer Platform, landlords were asked to agree to a 4 month deferral of 30% of the current rent charge with effect from 1 June 2011. Supported by NHP, the Company's largest landlord, and to be chaired by Daniel Smith of Grant Thornton, the other principal landlords agreed to form an official committee to act as an efficient conduit for the restructuring discussions and to ensure that negotiations continue to progress in a timely manner.
The Company also announces the appointment of Greenhill & Co., Inc., an independent investment banking firm, as joint financial advisor with KPMG, to assist the restructuring process.
Southern Cross reaffirmed that the provision of care remains the priority for all parties and that the negotiation process has not, and will not, compromise the quality of care it provides to its 31,000 residents.
Jamie Buchan, Chief Executive, commented:
"I would like to thank the landlords for attending today's meetings and for the time and commitment that they are giving to the process. These developments are a further step in a consensual and constructive process to create a sustainable future for the business.
"Throughout, Southern Cross remains fully committed to the provision of quality care to all of its residents."
Enquiries:
Southern Cross Healthcare Group PLC | +44 (0)1325 351100 |
Jamie Buchan, Chief Executive | |
David Smith, Group Finance Director Amy Kroviak, Director of Communications |
Financial Dynamics | +44 (0)20 7831 3113 |
John Waples/ Ben Brewerton |
About Southern Cross
Southern Cross is, in terms of number of beds, the largest UK provider of care home services for the elderly and a major provider of specialist services for people with physical and/or learning disabilities. The Group's care homes for the elderly operate under two distinct brands: Southern Cross Healthcare and Ashbourne Senior Living. Both brands provide a range of social and personal care services and nursing care services for elderly people with physical frailties and differing forms of dementia. The Group's specialist services operate under the Active Care Partnerships brand and provide long-term care services for people with physical and/or learning disabilities and for younger people with complex forms of challenging behaviour.
Southern Cross is focused on providing high quality care in well invested facilities, seeking to be the home of choice in each local community in which it operates. The Group provides care services for most of the local authorities in the UK which, together with the NHS, represent circa 78% of the Group's revenues. Its care home portfolio is largely purpose-built with a high percentage of single occupancy rooms and rooms with ensuite bathrooms.