NHP to create new company to run former Southern Cross homes
Court Cavendish to hold stake in new operating entity
A new company is to be created to take over the operation of 249 care homes owned by NHP and formerly run by Southern Cross.
NHP has announced that it has retained about £14m of imminently due loan interest payments in order to make provision for the working capital requirements of the new operating company that NHP expects to emerge at the end of the current consensual restructuring process being undertaken by NHP and Southern Cross.
NHP expects to make a similar retention in respect of its loan interest payments due in October 2011. Capita, the Special Servicer representing NHP’s lenders, has been made aware of the actions taken, and proposed to be taken, by NHP in this respect and agreed to suspend its rights to make a demand for the shortfall in interest payments made by NHP in July 2011. It is expected that a similar agreement will be entered into with Capita in October.
NHP said any new operating comp