FIVE Gwent care homes under threat because of their owner's financial difficulties have been thrown a lifeline after the company was more time to sort out its problems.

The Argus reported last week that Red Rose Nursing and The Rookery in Ebbw Vale, Millview House and Lodge in Newbridge, St Dunstans in Pontypool, and Sedbury Park in Chepstow were all facing an uncertain future after their owner Southern Cross Healthcare Group posted losses of £300 million in the six months to March 2011.

Southern Cross is UK's largest provider of care homes for the elderly with 750 homes across the UK, but chairman Christopher Fisher said a decline in local authority admissions and high rents had left the firm's finances in a "critical" condition.

Bosses were last week in discussions with landlords to reduce rents, but Southern Cross announced on Tuesday it had reached a deal to defer 30 per cent of its monthly rent payments between June and September.

It is hoped the measure will create a "summer platform", giving the company time to restructure its finances.

In a statement the firm said it was working with landlords, lenders and the Department of Health to look at a range of restructuring options, and would announce its proposals in July.

Chairman Mr Fisher added: "The objective will be to emerge with a stable and sustainable business model for the continuing care of our residents. Our primary concern in the continuity of care to all our 31,000 residents."