2023-12-19 09:00:14
New episode in the Orpea soap opera. On Tuesday, December 19, Caisse des Dépôts and a handful of insurers – including Maif and CNP – officially took control of the former world number one in nursing homes (accommodation establishments for dependent elderly people). The predominantly public group of French investors now holds 50.2% of the capital, after a further increase of the latter by 1.16 billion euros.
Saved from bankruptcy
This long way of the cross follows the publication of the book investigation THEGravediggers in January 2022, which was a resounding success. Journalist Victor Castanet recounts the mistreatment of residents, the lack of nursing staff and the frantic search for profit maximization…
Revelations which plunged Orpea into turmoil. A few days later, its general director Yves Le Masne was fired. Administrative and judicial investigations were opened, and the group was ordered by the State to reimburse 55.8 million euros to the Solidarity Fund for Autonomy (CNSA) from unduly received funding. As a result, its stock price fell by 90% in 2022.
To alleviate this crisis, a financial restructuring plan has emerged, notably planning to transform 3.8 billion euros of debt – out of more than 9 billion – into shares. On February 1, 2023, Caisse des Dépôts announced that it had become the largest shareholder of Orpea. A symbolic decision for the financial arm of the State, which thus saved it from bankruptcy.
“This could be a turning point for Orpea”
“If the Caisse des Dépôts keeps its commitments, this could be a turning point for Orpea, estimated Victor Castanet in an interview given to The cross. I’m not saying that everything will change, but the announcements should have consequences on the ground and the conditions of caregivers. »
An initial assessment was drawn up by Orpea in December – a year after the start of the group’s reorganization plan. The press release notes that “the supervision rate (of residents) has increased by 10% in the establishments”.
The Orpea scandal has hit players in the sector hard, as the French population is aging – people aged 75 to 84 are expected to increase by 50% by 2030. On November 14, Clariane, Orpea’s major competitor, had to launch a refinancing plan of 1.5 billion euros, under penalty of payment default.
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