A merger proposal by Priory Group to join with Four Seasons, the highly indebted nursing home business, has been rejected by creditors of Four Seasons, the company said, amid confusion over the extent of support for the deal.
The proposal was made by the Priory Group in a series of letters sent to Four Seasons creditors last month after the Four Seasons’ “special servicer” – a financial adviser representing all the company’s creditors – rejected a merger proposal. This prompted Priory Group to put the proposal directly to the company’s individual creditors. The merger proposal had the support of Royal Bank of Scotland, which is the largest creditor to both Four Seasons and Priory Group.
