The agreement was reached yesterday at a meeting between the Southern Cross Landlords’ Committee, the lenders Royal Bank of Scotland and Lloyds Banking Group, and senior board members.
The company and its landlords will now work towards a consensual solution to the firm’s financial problems which is be delivered over the next four months.
This process will be overseen by a restructuring committee comprising the landlords’ committee and the company.
The business, including the delivery of care, will continue to be the responsibility of the Southern Cross board, management team and staff, who said they have the full support of landlords and lenders.
Christopher Fisher, chairman of Southern Cross, said: “This is a most welcome development which puts an end to the recent unsettling period of uncertainty for our residents and their relatives. The company is now focused on working towards a consensual solvent restructuring.
“We thank our landlords and lenders for their support and look forward to working with them over the next four months to finalise the future arrangements for our homes."
Jamie Buchan, chief executive of Southern Cross, said: “All of the staff at Southern Cross have an important job to do in continuing to deliver excellent standards of care through the restructuring which will now be undertaken.
“I am very pleased to have the support of our landlords, lenders and government as we carry out this important task.”
Health minister Paul Burstow said the exact details of the agreement would be set out “over the next few days and the following weeks”.