Medway Council has tried to reassure 49 vulnerable people and their families after warnings the UK's largest care home owner could go bust.

Southern Cross, which owns Frindsbury Hall in Strood and Copper Beeches in Rochester, posted half-year losses of £311 million last week.

The results forced the firm to slash rent payments to its landlords in a bid to prevent going into administration.

It is understood the council and a private firm have formed an emergency plan, which would spring into action if the two Southern Cross homes in Medway were to shut down.

It would involve making sure residents were cared for until a permanent care firm was found to take over.

Several firms are believed to have shown an interest.

A Medway Council spokesman said: "We take very seriously our duty of care to our older and vulnerable residents.

"Forty-nine of our residents are placed in Southern Cross homes in Medway. We are aware of the recent news stories surrounding the financial situation at Southern Cross and therefore we are in discussions with the firm.

"We are constantly monitoring the situation and would, of course, ensure that care continues should the situation change."

Frindsbury Hall was rated 'excellent' in a 2008 inspection while Copper Beeches was rated 'good' in the same year.

Together the homes have space for 116 residents, with a proportion funded by Medway Council. The Messenger approached Frindsbury Hall's manager, but she refused to speak to us.

Southern Cross chairman Christopher Fisher said: "All key stakeholders in Southern Cross want this restructuring to succeed. We are in dialogue with the Department of Health, our lenders and landlords and they continue to support the process.

"Those landlords that do not want to take part in the longer term restructuring will be able to review other options but it is in everyone's interests if this is as part of a larger, managed and orderly process."

Do you have a friend or relative at either of the two homes? Call our newsroom on 01634 227803 or leave your comments below.