Allied plans debt restructure to stay in business
Homecare provider Allied Healthcare is pursuing a company voluntary agreement (CVA) as part of a plan to restructure its finances due to a ‘highly challenging environment’ that has placed the company under pressure.
A CVA would see Allied agreeing a revised schedule of repayments with its creditors so that the company can continue investing in its services and people. Allied, which has contracts with 150 councils and employs more than 8,500 people, is owned by private equity firm Aurelius.
Rising labour costs , together with a potential £11m bill for backdated ‘sleep in’ payments, have been identified as the chief reasons for Allied’s financial troubles.