Southern Cross and landlords agree
A committee to be formed to restructure the company
At a meeting on the 15th June between Southern Cross management and their landlords an agreement was reached to form a committee to restructure the company over the next four months with the objective of avoiding insolvency. The meeting was also attended by Barclays and Lloyds who are owed £50m and the government which is opwed £20m in tax. The landlords expressed ‘full confidence’ in the current management. Both parties agreed the company would operate 400 homes, the remaining 352 being taken over by other operators such as Four Seasons (who own 85 Southern Cross run homes) and Bondcare.