Summer Platform Update (5705H)

TIDMSCHE

RNS Number : 5705H

Southern Cross Healthcare Grp PLC

31 May 2011

Tuesday 31 May 2011

Southern Cross Healthcare Group PLC

('Southern Cross', 'the Company' or 'the Group')

Summer Platform Update

Southern Cross, the UK's largest care home operator, provides the following update regarding its ongoing financial restructuring.

The Group confirms that it will defer an aggregate of 30% of its monthly cash rental payments from 1 June to 30 September 2011. This is designed to create a 'summer platform' during which the Company and its key stakeholders can agree an appropriate restructuring of the Company's affairs.

The Company remains confident that a critical mass of landlords will support the summer platform and believes that other key stakeholders including its lenders, the Department of Health and Local Authorities are similarly supportive. The Company is clear that all responsible stakeholders recognise that continuity of care is the single biggest shared priority and believes that a solution to its financial difficulties will be forthcoming within a co-ordinated restructuring. The Group, together with its stakeholders, is reviewing a range of options and expects to make a further statement about its restructuring proposals in July.

Christopher Fisher, Chairman of Southern Cross, 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.

"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."

Enquiries:

 
Southern Cross Healthcare Group 
 PLC                                       +44 (0)1325 351100 
Jamie Buchan, Chief Executive 
David Smith, Group Finance Director 
 Amy Kroviak, Director of Communications 
 
 
Financial Dynamics            +44 (0)20 7831 3113 
John Waples/ Ben Brewerton

About Southern Cross

Southern Cross is, in terms of number of beds, the largest UK provider of care home services for the elderly and a major provider of specialist services for people with physical and/or learning disabilities. The Group's care homes for the elderly operate under two distinct brands: Southern Cross Healthcare and Ashbourne Senior Living. Both brands provide a range of social and personal care services and nursing care services for elderly people with physical frailties and differing forms of dementia. The Group's specialist services operate under the Active Care Partnerships brand and provide long-term care services for people with physical and/or learning disabilities and for younger people with complex forms of challenging behaviour.

Southern Cross is focused on providing high quality care in well invested facilities, seeking to be the home of choice in each local community in which it operates. The Group provides care services for most of the local authorities in the UK which, together with the NHS, represent circa 78% of the Group's revenues. Its care home portfolio is largely purpose-built with a high percentage of single occupancy rooms and rooms with ensuite bathrooms.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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