Mimosa Healthcare Group completes £30m debt restructure

Mimosa is a UK care home operator: Nick Winks of WayPoint was appointed to the Board in August 2010. At the time, Mimosa was suffering from the general tightening in Local Authority budgets and had a £30m debt to Bank of Scotland (“BoS”) that was obviously unsustainable.

After a careful review of the options WayPoint presented a report to BoS explaining how the best option for the company and the bank was a sale and leaseback to repay half of the bank debt in cash and a partial debt forgiveness coupled with a limited warrant as an anti embarrassment for the bank.

BoS asked Ernst & Young Birmingham to look at the WayPoint plan to test if it did indeed provide the optimum solution.

By May 2011 the restructure, as proposed by WayPoint, was put in place and Mimosa continues to trade with much lower gearing whilst BoS has recovered a substantial amount of its original lending package.

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