The FT looks at the refinancing deal planned by care home giant, HC-One
June 12, 2016
FT reporter Gill Plimmer examines the background to the announcement by residential care giant, HC-One to reduce its debt via a £200m sale and leaseback deal. Our Business Risk Adviser, Nick Hood comments on the precarious financial state of the UK care home sector:
“HC-One’s move to raise funds through a sale and leaseback has unpleasant echoes of the financial manoeuvrings, which brought Southern Cross to its knees.
“Replacing interest charges with rent liabilities is little more than financial engineering and will do nothing to change a flawed business model, which only action by the government to increase revenue for care home operators can put right.”