The firm’s landlords say they have made “significant financial concessions” to avoid closing any homes Care home operator Southern Cross has reached an agreement that gives it four months to find a solution to its financial difficulties.
Southern Cross will continue to run all 751 care homes during that time.
The process will be overseen by a restructuring committee made up of representatives of the company and its landlords.
The process is still expected to lead to hundreds of ITS care homes being run by other operators.
Southern Cross, its landlords and other creditors were in crisis talks on Wednesday.
It has emerged that government representatives were not present at the meeting.
Southern Cross and its landlords issued a joint statement after the meeting.
“The company and the landlords will work towards a consensual solution to the company’s current financial problems, which will be delivered over the next four months,” it said.
“The business, including the delivery of care, will continue to be the responsibility of the Southern Cross board, management team and staff who have the full support of both the landlords and lenders in the delivery of this important task.”
At the end of the process, Southern Cross is expected to end up operating under a different name with between 250 and 400 of its current 751 care homes.
Other operators will run the rest of the homes.
Southern Cross said last month it planned to stop paying about a third of its rental bill.
It is the UK’s largest care home operator with 31,000 residents, employing 44,000 staff, of which the company has already said it will cut 3,000.
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