Four Seasons Healthcare, the heavily indebted care home company, is close to securing an agreement with creditors to halve its £1.5bn debt pile after a group of hedge funds that had previously blocked the deal gave it their support.

The restructuring – on which an in-principle agreement is expected to be announced next week – is being closely watched for its implications for the work out of other complex property backed financings, which have come under pressure as property values have fallen.