LONDON (Reuters) - Coupons on 525 million pounds ($701.40 million) of debt underpinned by retirement home operator Four Seasons [FUSEH.UL]will not be paid, the issuers of the notes said on Wednesday.
The owners of Four Seasons recently agreed a deal with investment firm H/2 Capital Partners to restructure the group, transferring ownership to a new owner controlled by its creditors.
The boards of Elli Finance (UK) Plc and Elli Investments, the issuers of the notes, said their respective boards “have concluded that they will not be in a position to pay the coupons due under the Notes on 15 June 2018”.
The notes affected are 350 million pounds in 8.750 percent senior secured notes due 2019, and 175 million pounds in 12.250 percent senior notes due 2020, the issuers said in a statement.
Related to the announcement, the issuers said that Four Seasons and H/2 Capital Partners had also agreed an amendment and waiver to the terms of an existing 70 million pounds super senior facility agreement.
“In preparation for the transfer to new ownership, the Group will undertake an intra-group reorganization, the details of which will be finalised between the Majority Holders and the Group over the coming weeks,” the statement said.
Reporting by Simon Jessop; editing by Sinead Cruise