Shares in Southern Cross Healthcare –
The facility is part of £82m worth of syndicated credit secured against a portfolio of 20 recently acquired and developed homes which are held for resale and leaseback.
The £46m facility was due to have been repaid today following the sale of these properties.
A company spokesman said, “While the company has received indicative offers in relation to certain of these assets, and is continuing actively to pursue their sale, they remain group assets for the time being.
“Accordingly, the company, which is working closely in partnership with its banking syndicate, has been granted an extension to the repayment date and a waiver of an anticipated non-compliance with a financial covenant until 28 July.
“This period will allow the group to pursue the potential sale of some or all of these assets and/or suitable amendments to its overall longer term funding arrangements.”
Occupancy at Southern Cross homes has risen since the half year from 32,900 residents to 33,450 residents.
However it said this increase has not happened at the speed nor to the absolute number of residents, originally anticipated by the company.
“Slightly lower occupancy spread across a large portfolio offers limited scope to reduce costs and overall financial performance in the second half has therefore fallen behind expectations. “
The company also announced the immediate departure of Finance Director Jason Lock. He will be replaced by Richard Midmer, previously Finance Director of
Shares were down 73% to 84.5p in early trading.#
