Guy Hands has capitulated to an American investor in a battle for control of one of the UK’s largest care home operators after the private equity tycoon conceded ownership as part of a debt restructuring.
Terra Firma said yesterday that it had agreed to cede ownership of Four Seasons Health Care to H/2 Capital, a US hedge fund, ending a dispute over the future of the care home operator two years after it largely wrote off the value of its investment.
In a statement, Terra Firma said it would accept H/2 Capitals restructuring offer before it was due to make a £26m interest payment.
Terra Firma, which was set up by Mr Hands 15 years ago, said it welcomed its rivals plan to assume ownership responsibilities as part of a £135m cash injection into the struggling business which has a £525m debt pile.
Hands’ decision to hand over the keys to Four Seasons, crystallises a massive £450m loss on the disastrous deal according to the Telegraph.
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