Southern Cross landlords meet to discuss restructuring

Today's talks will mainly centre on rental arrangements and potential repossessions, with the government set to preside over a meeting between the company and landlords on Wednesday to agree a deal.

Southern Cross has already temporarily reduced its rents by 30 per cent in order to buy some time to carry out negotiations and has said it plans to return 132 of its homes to its landlords over the next five years.

Those in the insolvency and restructuring sector may be intersted to dsicover that the company has been struggling to pay annual rents of around £200 million and reported half-year losses of £311 million.

Its total rental liabilities currently stand at £5.8 billion, however, the government has said it will not bail out the company.

As many as 3,000 employees will lose their jobs as part of a staff effectiveness drive, although the firm's senior management is confident that this will not impact on the continuity or quality of care provided to the company's 31,000 residents.