Home » Friends. » Southern Cross lenders in line for interest rate swap compensation

Southern Cross lenders in line for interest rate swap compensation

The Telegraph By Marion Dakers, Financial Services Editor

5:00PM BST 22 Aug 2015

RBS payment could be a belated windfall for creditors to the failed care home provider 

Southern Cross sign

Southern Cross, which managed 750 care homes, was floated by Blackstone in 2006
Lenders to the failed care home operator Southern Cross are set to receive a belated windfall after the restructuring team discovered that RBS is preparing to pay compensation for a mis-sold interest rate swap.

The collapse of Southern Cross in 2011 was one of the most spectacular corporate failures of recent years, illustrating the dangers of the sale and leaseback model that saddled the company with rental bills on 750 homes.

Landlords were handed control of the sites, which were home to 32,000 residents. They have also been paid 0.51p for every pound owed when Southern Cross and more than 150 subsidiaries were put into company voluntary agreements (CVAs)…

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