In 2006 the Jersey-based Castle Holdings, a company backed by Lydian Capital, purchased Castlebeck from HG Capital, a Venture Capital transfer Vehicle for £255m .
The sale earned HG Capital a £23.1 million fee.
£1 billion in fees were earned from just 5 healthcare sales in 18 months.
So much for our cash- strapped NHS.
Before the Panorama expose, Castlebeck’s finances were buoyant
Dispelling the myth that more money produces better care rather than more profit..
But in light of such shocking abuse something had to be done, so bulldozers were sent in and televised .
Despite Castlebeck’s inevitable demise, an expensive business turn round specialist was paid to restore its reputation, two units closed and 3 million spent refurbishing the other 20.
The Company itself had already undergone a significant refinancing process, and by 2011 had debts of £431m.
And was taken over by its banks led by RBS…
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