EMBATTLED care home owner Southern Cross has a “reasonable” chance of agreeing a deal to save the business, its chairman claims.
The comment came despite the company plunging into the red after a squeeze on revenues.
Southern Cross, which has five homes in Huddersfield, is locked in talks with the landlords of its 750 care homes over a reduction in rates – saying it cannot afford to pay full rents any longer.
If a deal is agreed, it is thought it could pave the way for an injection of up to £100m of much-needed funds from new investors.
The firm runs Abbey Place Care Centre, Fartown; Alwoodleigh Care Centre, Edgerton; Botham Hall, Milnsbridge; Bryan Wood Care Centre, Edgerton; and Astley Grange, Deighton.
Chairman Christopher Fisher said the firm was in a “critical financial condition” and that all key stakeholders would have to agree on a comprehensive refinancing package. That could mean landlords taking a stake in the firm as well as lowering rents.
Darlington-based Southern Cross, which looks after 31,000 elderly or ailing patients, has been given until the end of June to agree a deal by its banks.