SOUTHERN Cross, the crisis-hit care home operator, is looking to raise £100m as part of efforts to secure its future, it was reported yesterday.
A restructuring plan drawn up by chief executive Jamie Buchan could see it jettison up to 200 homes and give landlords a share of the business.
Reports said newly-appointed financial adviser Greenhill was working on approaches to possible investors, including private equity groups and American healthcare multinationals in the hope of securing money to pay down debt.
Southern Cross is the UK’s biggest residential care home operator with around 750 homes and 31,000 residents. However it is struggling to cope with a large and rising rent bill and declining fees from local authorities.
The Darlington-based firm, which warned in March that it was facing a breach of its banking covenants, is currently locked in negotiations with landlords about long-term rent cuts in return for shares in the company.
