Four Seasons Health Care and lenders sign capital restructuring agreement

(9 December 09) Four Seasons Health Care Group today announces that all legal documentation relating to the consensual capital restructuring of the Group's debt has been agreed and signed with the Group's financial creditors and with Hatfield Philips International Limited (the Servicer and Special Servicer to the senior lenders of the Group). All conditions relating to the Group's capital restructuring have also been satisfied and the restructuring has completed today.

Under the capital restructuring agreement certain of the Group's lenders will exchange debt owed to them for an equity stake in the business. This will reduce the Group's debt by over 50 per cent to around £780m.

Following the restructuring, certain of the lenders will hold voting equity in the Group. However, RBS and funds in which RBS participates (RBS) will hold a total interest of approximately 38% in the Group but RBS will not have any day one control or influence over the Group. In particular, RBS will have no voting rights attached to its shares, nor will it be entitled to any rights to Board representation.

The Group's remaining debt matures in September 2010 and the Group will seek to arrange to extend or refinance this debt before the maturity date. The Group will now commence working actively towards a long term refinancing of the residual debt.

Further information:

Parys Communications

Robert Mitchell: 07976 514 833 rmitchell@NOSPAMparys.com
Ryszard Bublik: 07977 987991 rbublik@NOSPAMparys.com

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