PwC issues going concern against Southern Cross

PwC HAS issued a going-concern warning against care homes operator Southern Cross.

Auditors of the company issued the concern about the ability of its client to continue trading based on statements from the board.

Pressure on local authorities to maintain or lower fees to care home operators, along with potential breaches of its banking covenants, have led to the warning.

KPMG is helping Southern Cross in the process of “intense negotiations” with landlords and lenders with a view to restructuring its debt.

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