Southern Cross talks 'constructive'

Britain's biggest care home provider, Southern Cross, held talks with its landlords yesterday as it battles to find a solution to its financial problems.

The group hopes to persuade its landlords to reduce rents and help stave off an imminent breach of its banking covenants.

The Darlington-based company appointed KPMG to help it negotiate with landlords and lenders after losses for the year to 30 September more than doubled. Chief executive Jamie Buchan said the negotiations were "constructive".