ORPEA: End of Discussions Between a Consortium of French Third-party Investors Led by the Caisse des Depots et Consignations and a Group of Unsecured Financial Creditors

Rhea-AI Summary

ORPEA, a leading global player in frailty care, announced the end of restructuring negotiations with a consortium of French investors and unsecured creditors holding €3.8 billion in debt. Despite efforts to reach a firm agreement, differing valuations hindered progress. The company plans to continue discussions with unsecured creditors to finalize a restructuring plan, including equitization of debt and a potential €1.3 to €1.5 billion share capital increase. ORPEA emphasized maintaining equal access to information for stakeholders throughout this process.

Positive

• Continuing discussions with unsecured creditors for restructuring.
• Potential share capital increase between €1.3 billion and €1.5 billion.

Negative

• Negotiations with investors ended without an agreement.
• Diverging valuation expectations hindered restructuring efforts.

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

As indicated in its press release published on 11 January 2023 and in accordance with the announcements made in the press releases published during the end of last year, ORPEA (Paris:ORP) has continued over the last few days its discussions with a consortium of French third-party investors led by the Caisse des Dépôts et Consignations and a group of unsecured financial creditors holding approximately 50% of the Company’s €3.8 billion unsecured debt. These discussions have been conducted under the aegis of the conciliator, as part of the conciliation procedure opened by the President of the specialized Commercial Court of Nanterre. They aimed at reaching, as quickly as possible, a firm agreement on the restructuring plan allowing to finance the Company’s Refoundation Plan and to reach a sustainable financial structure.

Despite its efforts to reach the said agreement, the Company notes with regrets that the respective expectations of the consortium of investors and the group of unsecured financial creditors concerned in terms of valuation do not allow to reach an agreement. Therefore, these negotiations come to an end.

The Company will continue discussions with the group of unsecured financial creditors whose support is required to reach an agreement on the restructuring plan in line with its proposal communicated to the market on 15 November 2022, i.e. the equitization of €3.8 billion of the Company’s unsecured debt and a share capital increase for an amount between €1.3 billion and €1.5 billion.

The Company regrets the failure of these discussions but nevertheless welcomes the efforts of each party to find an agreement.

The Company confirms that information that could be qualified as inside information within the meaning of Regulation No. 596/2014 of 16 April 2014 on market abuse and that may have been given on a confidential basis to the various stakeholders in the context of the negotiations has indeed been published to the market, either in the past or in the context of this press release, with the aim of re-establishing equal access to information relating to the Group between the investors.

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/

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230119005838/en/

Investor relations

Orpea

Jean-Baptiste Roussille

Head of Investor Relations

j-b.roussille@orpea.net



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 : 01 44 71 94 94

ORPEA@newcap.eu



Media Relations

Orpea/Image 7

Isabelle Herrier-Naufle

Directrice Relations Presse

Tel : 07 70 29 53 74

i.herrier-naufle@orpea.net



Image 7

Charlotte Le Barbier

Tel : 07 06 78 37 27 60

clebarbier@image7.fr

Source: ORPEA

FAQ

What are the latest updates on ORRRY's restructuring plans?

ORPEA has ceased negotiations with a consortium of investors regarding its €3.8 billion unsecured debt but continues discussions with unsecured creditors to finalize a restructuring plan.

How much debt is ORRRY looking to restructure?

ORPEA is working on restructuring approximately €3.8 billion of unsecured debt.

What is the planned share capital increase for ORRRY?

The planned share capital increase for ORPEA is between €1.3 billion and €1.5 billion.

Why did negotiations end for ORRRY's restructuring?

Negotiations ended due to differing valuation expectations between the investors and the group of unsecured creditors.

When did ORRRY announce the end of negotiations?

ORPEA announced the end of negotiations in a press release published on January 11, 2023.