The group has been in turmoil since the publication in January 2022 of the investigative book “The Gravediggers». LOIC VENANCE / AFP
This agreement provides in particular to erase 3.8 billion euros of debt out of a total of 9.7 billion, by converting them into capital.
Orpea announced on Tuesday that it had signed the agreement which will allow a group led by Caisse des dépôts to take control of the group of retirement homes, in turmoil for a year, following a financial restructuring. “A new important step in the financial restructuring of Orpea has just been reached with the signing of the agreement which crystallizes the commitment of the parties to the agreement in principleannounced in early February, says a statement from the group.
Orpea signed this agreement with a group of investors led by Caisse des dépôts (CDC), accompanied by insurers, including CNP Assurances, Maif and MASCF, as well as a group of creditors. This agreement plans to erase 3.8 billion euros of the group’s debts out of a total of 9.7 billion, by converting them into capital. It also provides for investors to bring 1.55 billion euros of new money to the group, present in 22 countries and which manages some 350 establishments in France (Ehpad, clinics, etc.).
At the end of the process, the group led by the CDC will hold 50.2% of the capital of Orpea, the creditors 49.4% and the current shareholders, if they decide not to participate in the capital increases which will be open, 0.4%. Orpea specifies that it “intends to continue discussionswith unsecured financial creditors who have not yet joined the agreement.
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The group has been in turmoil since the publication in January 2022 of the investigative book “The Gravediggerswhich exposed resident abuse and financial irregularities under the former leadership. Its financial restructuring should allow it to implement a transformation plan, presented last summer.
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