A nursing home group with responsibility for the care of hundreds of people in Tayside and Fife is to defer payment on almost a third of the rent on its properties over the summer.
Southern Cross has been struggling with financial difficulties for some time and is seeking a resolution that will not compromise the care of elderly and infirm residents.
On Tuesday the group discussed its financial restructuring, confirming that it will defer an aggregate of 30% of its monthly cash rental payments from today until September 30.
The move is designed to create a ‘summer platform’ during which the company and key stakeholders can agree an appropriate restructuring of the company’s affairs.
Southern Cross has said it remains confident that sufficient landlords will support the summer platform and believed that other key stakeholders including its lenders, the Department of Health and local authorities were supportive.
The company was said to be clear that all stakeholders recognised that “continuity of care” was the “single biggest shared priority” and believed that a solution would come via a co-ordinated restructuring.
A range of options are being reviewed.
Chairman Christopher Fisher said, “We believe that all of the key stakeholders in Southern Cross want this restructuring to succeed.
“We are in dialogue with the Department of Health, our lenders and landlords and they continue to support the process.
“Those landlords that do not want to take part in the longer term restructuring will be able to review other options but it is in everyone’s interests if this is as part of a larger, managed and orderly process.”
He added, “The objective will be to emerge with a stable and sustainable business model for the continuing care of our residents.
“Our primary concern is the continuity of care to all our 31,000 residents.”
Southern Cross expects to make a further statement about its restructuring proposals in July.