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Care home giant Four Seasons teeters on the brink of administration

A debt-laden care home chain with around 17,000 vulnerable residents is on the brink of collapse amid a row between its wealthy backers.

Four Seasons Health Care could be tipped into administration within 10 days if it misses a £26m interest payment due next Friday that it has warned it may not pay.

Its owner, private equity firm Terra Firma which is run by tycoon Guy Hands, and key lender, US hedge fund H/2 Capital Partners, have yet to agree on a rescue deal as the deadline looms.

The crisis has raised fears of a repeat of the collapse of Southern Cross, which put 31,000 people at risk when it went bust amid a slump in the property market in 2011. About 100 of those homes were taken over by Four Seasons.

It comes amid huge concern about debt and underfunding across the care home sector. As well as its residents across 360 homes, Four Seasons has 25,000 employees and hundreds of agency staff.

Read more in the Daily Mail.

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