ORPEA: Adhesion to the Restructuring Plan Proposed by the Company of a Majority of Its Unsecured Financial Creditors

Rhea-AI Summary

ORPEA S.A. announced that as of March 10, 2023, approximately 51% of its unsecured financial creditors, totaling around 1.9 billion euros, have adhered to a lock-up agreement stemming from a financial restructuring process initiated on February 14, 2023. The company plans to file a request for an accelerated safeguard proceeding before the Commercial Court of Nanterre to advance its restructuring plan. ORPEA operates in 22 countries with a focus on elderly care, rehabilitation, and mental health services, employing over 72,000 staff and serving more than 255,000 patients annually.

Positive

• 51% of unsecured creditors (approx. 1.9 billion euros) adhered to the lock-up agreement.
• Company has a robust operational framework across 22 countries and three core business segments.

Negative

• Ongoing financial restructuring indicates potential liquidity issues.
• Dependence on creditor agreement raises concerns about future financial stability.

PUTEAUX, France--(BUSINESS WIRE)-- Regulatory News:

ORPEA S.A. (Paris:ORP) (the “Company”) announces that as of 10 March, which is the longstop date to accede to the lock-up agreement relating to the financial restructuring of the Company concluded on 14 February 2023 with, on the one hand, a group of French long-term investors led by the Caisse des Dépôts, accompanied by CNP Assurances, MAIF and MACSF, and, on the other hand, five institutions holding unsecured debt of the Company (the “SteerCo”)¹, approximately 51% of the unsecured financial creditors of the Company² (representing unsecured debt of approximately 1.9 billion euros) have adhered to the lock-up agreement.

As planned, the Company contemplates to file, within the next days, a request before the specialised Commercial court of Nanterre for the opening of an accelerated safeguard proceeding in order to implement its financial restructuring plan.

About ORPEA

ORPEA is a leading global player, expert in the care of all types of frailty. The Group operates in 22 countries and covers three core businesses: care for the elderly (nursing homes, assisted living, home care), post-acute and rehabilitation care and mental health care (specialized clinics). It has more than 72,000 employees and welcomes more than 255,000 patients and residents each year.

https://www.orpea-group.com/en/

ORPEA is listed on Euronext Paris (ISIN: FR0000184798) and is a member of the SBF 120, STOXX 600 Europe, MSCI Small Cap Europe and CAC Mid 60 indices.

¹ See the press release published by the Company on 14 February 2023.

² Including the members of the SteerCo, which are the initial signatories of the Lock-Up Agreement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230313005336/en/

Investor Relations

ORPEA

Benoit Lesieur

Investor Relations Director

b.lesieur@orpea.net

Toll free tel. nb. for shareholders:

+33 (0) 805 480 480

Investor Relations

NewCap

Dusan Oresansky

Tel.: +33 (0)1 44 71 94 94

ORPEA@newcap.eu

Media Relations

ORPEA

Isabelle Herrier-Naufle

Media Relations Director

Tel.: +33 (0)7 70 29 53 74

i.herrier-naufle@orpea.net

Image 7

Charlotte Le Barbier

Tel.: +33 (0)6 78 37 27 60

clebarbier@image7.fr

Laurence Heilbronn

Tel.: +33 (0)6 89 87 61 37

lheilbronn@image7.fr

Source: ORPEA

FAQ

What is the significance of the lock-up agreement for ORRRY?

The lock-up agreement is crucial as it indicates that 51% of unsecured financial creditors are on board with ORPEA's restructuring plan, which could enhance the company's chances of recovery.

When will ORPEA file for accelerated safeguard proceedings?

ORPEA plans to file the request for accelerated safeguard proceedings shortly after March 10, 2023.

How much unsecured debt does ORPEA have?

ORPEA has approximately 1.9 billion euros in unsecured debt.

What are ORPEA's main business areas?

ORPEA focuses on elderly care, rehabilitation, and mental health care services.

What is ORRRY's current operational reach?

ORPEA operates in 22 countries with over 72,000 employees.