Orpea: agreement in principle on financial restructuring

(CercleFinance.com) - Orpea announces an agreement in principle for a financial restructuring plan with a group of third party French investors led by the Caisse des Dépôts et Consignations (CDC), and a group of financial creditors holding approximately 50% of its unsecured debt.


The agreement in principle includes a conversion into equity of all of the unsecured financial debt carried by the Ehpads group, corresponding to approximately a 3.8 billion euro reduction in its gross debt.

It also includes the contribution of cash equity of up to 1.55 billion euros, via capital increases to be subscribed mainly by the group, with the balance guaranteed by unsecured financial creditors.

At the end of the envisaged operations, if they do not participate in the capital increases, the existing shareholders would hold only about 0.4% of the group's capital, while the consortium would hold about 50.2% and the unsecured financial creditors about 49.4%.


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