THE Priory Group, famous for treating celebrity addicts, yesterday expressed its disappointment that healthcare group Four Seasons had not accepted its merger proposals.

Four Seasons owns and operates 52 care homes in the region and also employs about 200 people at its offices in Lingfield Point, Darlington.

It is understood that after two previous bids for the group, Philip Scott, Priory’s chief executive, has now written directly to about 30 lenders which are owed £1.5bn by the healthcare group.

It is believed the direct approach to creditors follows Mr Scott writing to Hatfield Philips, the advisor to all Four Seasons’ banks, firstly in October, proposing a cash bid, and then at the end of last month,proposing a merger, both of which were rejected.

The latest approach has also been rejected by the Four Seasons board and some of the banks, including Morgan Stanley and Goldman Sachs.

Yesterday a Priory Group spokesman said: “Priory Group remains disappointed that the board of Four Seasons has not recommended Priory’s proposals to the organisations that provide its lines of credit.”

However, Four Seasons lenders are believed to have been encouraged by a review of the care home business by accountants Price Waterhouse Coopers, with the company due to make operating profits of £100m this year.

It is understood that Four Seasons believes a proposal to swap part of the company’s debt into equity is the best solution.

It hopes to have a deal by January 25, when a standstill agreement with its banks on interest payments expires.