Four Seasons Health Care statement on new restructuring proposal

The negotiations between Four Seasons Health Care Group, Hatfield Philips International Limited (the Servicer and Special Servicer to the senior lenders of the Group) and its lenders to agree a consensual capital restructuring solution to the Group's debt have continued to make progress towards reconciling the interests of the various lenders. Hatfield Philips has now presented its restructuring proposal to the lenders. This proposal builds on the significant progress that has been achieved in negotiations and seeks to address the remaining points of difference between lenders in a way that balances fairly the interests of all lenders to achieve their agreement. Hatfield Philips intends to circulate a formal term sheet and lock up agreement and will request that the lenders to confirm agreement to the restructuring commercial terms by close of business 6th July.

A consensual restructuring of the Group's debt that delivers a robust capital structure remains the Group's preferred solution. However, it considers it is in the interests of the business, its customers, suppliers and employees to bring a final and speedy resolution to its capital structure issues. The Group and Hatfield Philips International have therefore concluded that if the lenders are unable to reach agreement on the restructuring proposal within this reasonable period, their time and efforts should become focused on formally commencing an orderly sale of the Group that delivers a sustainable capital structure. The Group remains confident that neither the consensual restructuring nor a sale will have any impact on day to day operations, its customers or its trade creditors.

The Group continues to perform well in its day to day operations with occupancy at record levels and it believes that if a sale process were to be launched prospective purchasers would wish to preserve the value of the operating business.

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