Raft of firms advise on Southern Cross restructuring and rent wrangle
A trio of magic circle firms are advising on the high-profile restructuring of Southern Cross as the troubled care homes group attempts to reach a deal with landlords over unpaid rent. The negotiations have attracted intense media attention in recent weeks amid fears that the group may have to close some of its homes due to difficulties in paying a multimillion-pound rent bill.
June 14, 2011 at 11:04 AM
2 minute read
A trio of magic circle firms are advising on the high-profile restructuring of Southern Cross as the troubled care homes group attempts to reach a deal with landlords over unpaid rent.
The negotiations have attracted intense media attention in recent weeks amid fears that the group may have to close some of its homes due to difficulties in paying a multimillion-pound rent bill.
Clifford Chance (CC) is advising Southern Cross on its restructuring, with a team led by restructuring partners Nicholas Frome and Iain White and corporate partner Tim Lewis.
Linklaters is advising a committee of 80 landlords on the rent negotiations, while Freshfields Bruckhaus Deringer is acting for outsourcing firm Capita, which is co-ordinating the creditors for key landlord NHP.
Freshfields' team is headed up by banking partner Simon Johnson, who specialises in real estate financing, alongside restructuring partner Adam Gallagher.
NHP has instructed Eversheds, with company commercial partner Paul de la Pena leading the firm's team.
Meanwhile, Hogan Lovells is acting for main creditors Barclays and Lloyds, led by the firm's global head of restructuring and business insolvency Stephen Foster. The banks are reported to be owed around £40m in total by Southern Cross.
CC has advised Southern Cross since its £423m initial public offering (IPO) in 2006, which saw it edge aside Ashurst to win the coveted mandate.
Blackstone had instructed Ashurst on the original 2004 acquisition of Southern Cross, but CC won the IPO role after advising the private equity house on the 2005 purchase of NHP.
Southern Cross is the largest care home provider in the UK, with a total of 31,000 residents.
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