Care provider for people with learning disabilities in financial difficulties

European Care, a care provider for people with learning difficulties, is said to be facing a takeover or a restructure due to financial problems.

Its chief executive, Ted Smith claims the company has a “very supportive banking group” that is dealing with its large debts. He said the company is looking “a restructure or a sale” in the New Year.

A group of private equity investors led by Duke Street Capital is making a bid to take control of European Care, according to Sky News.

The care provider, which is known to be in financial difficulties, is effectively owned by its syndicate of lenders.

European Care is made up a care-homes division and European Lifestyles, which supports adults and young people with learning disabilities and brain injuries through schools and residential and supported living services.

Other financial investors bidding for European Care include DE Shaw and Varde Partners, two funds which specialise in buying distressed debt.

Sky News claims they been acquiring tens of millions of pounds of European Care's loans in recent weeks with a view to proposing a takeover of the company.

Patron Capital, Oaktree and Graphite are also reported to have expressed an interest.