* Care-home bailout could cost £600m * Second biggest care company also in trouble Shark: Stephen Schwarzman's U.S. private equity firm Blackstone bought out Southern Cross Healthcare in 2004 before selling them three years later
Taxpayers face having to rescue more than 31,000 vulnerable people amid financial meltdown at the UK’s biggest care-home company.
The bill could run into hundreds of millions of pounds after ruthless City speculators left Southern Cross Healthcare in dire straits.
There is anger and outrage that so many lives have been thrown into turmoil through the actions of City venture capitalists.
The U.S. private equity firm Blackstone, led by Stephen Schwarzman, bought Southern Cross in 2004 for £162million and sold it three years later. It is believed to have quadrupled its investment.
But to achieve this it sold off the company’s homes, robbing Southern Cross of its capital and forcing it to lease the properties back from another company.
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