SOUTHERN Cross, the crisis-hit care home operator, is looking to raise £100 million as part of efforts to secure its future, it was reported today.

A restructuring plan drawn up for the Darlington-based company by chief executive Jamie Buchan could also see it jettison up to 200 homes and give landlords a share of the business.

Reports said newly-appointed financial adviser Greenhill was working on approaches to possible investors, including private equity groups and American healthcare multinationals in the hope of securing money to pay down debt.

Southern Cross is the UK's biggest residential care home operator with around 750 homes and 31,000 residents.

However it is struggling to cope with a large and rising rent bill and declining fees from local authorities.

The firm, which warned in March that it was facing a breach of its banking covenants, is currently locked in negotiations with landlords about long-term rent cuts in return for shares in the company.

While the talks take place it has asked landlords to agree to a four month deferral of 30 per cent of its current rent charge with effect from June 1.

The Sunday Times said a wider reorganisation of the property portfolio would see it quit between 100 and 200 care homes, with the majority being taken over by another operator.

Further details on the company's plight is expected on Thursday when it publishes half-year results. Losses more than doubled in the year to September 30 and prompted the company to appoint KPMG to help it negotiate with landlords and lenders.

Councils and primary care trusts pay for more than 70 per cent of Southern Cross's customers. The company said the negotiation process ''has not, and will not'' compromise the quality of care it provides to its 31,000 residents.