Latham & Watkins has advised the senior secured lenders to the Lifeways Group, the UK’s largest supported living provider, in respect of its holistic balance sheet restructuring and recapitalisation.

The restructuring involved a consensual transfer of ownership to the lenders, a significant deleveraging and the injection of a new debt financing, as well as the compromise of onerous leases and other unsecured liabilities through a multi-company UK restructuring plan.  The case is notable for being the first successful restructuring plan by a regulated UK healthcare business, and involved use of the Court’s cross-class cramdown powers.

The restructuring significantly strengthens the financial position of the Lifeways Group so that it can continue to provide the best care for around 5,000 of its service users across the UK.

The multidisciplinary London Latham team was led by restructuring and special situations partners Simon Baskerville and Jessica Walker, with associates Olly Bretton, James Hollingshead, and Jo Fernandes. Advice was provided on finance matters by partner James Chesterman, with counsel Tristram Gargent, and associate Christina Nasioutzik; on corporate matters by partner Kem Ihenacho, with associates James Richards and Roisin Mbonu; on real estate matters by partner Quentin Gwyer with counsel Michael Beanland; on employment matters by associate Charlie Bowden; and on tax matters by partner Helen Lethaby and associate Lina Le Roux.