ABOUT 31,000 elderly people could be made homeless after a care home provider was plunged into fresh chaos.

Shares in Southern Cross Healthcare, which runs 750 homes, sank 60% yesterday as it revealed it may not be able to pay off its debts.

Its losses doubled to £47.4million in the year to September 2010.

The Darlington-based group blames a fall in local authority funding and higher rents and is appealing for help from the Government.

GMB union boss Paul Kenny said: "These 750 care homes aren't failing factories. They are an essential part of every community."