Orpea placed in “accelerated safeguard” procedure
The private group of retirement homes and clinics Orpea announced on Friday that it was the subject of an “accelerated safeguard” procedure before the commercial justice system.
This is an expected step in the implementation of its restructuring plan which should lead to a change of shareholder and the cancellation of part of its heavy debt, the company said in a press release.
“The plan is proceeding as planned. I am extremely confident for the future,” Laurent Guillot, CEO of Orpea, who took over the reins of the company last year, told AFP after the explosion. provoked by Victor Castanet’s book-investigation, “Les Fossoyeurs”.
Approved in recent weeks by around 51% of unsecured financial creditors, this restructuring plan should enable the group to ensure its “sustainability”, underlined Mr. Guillot. It is a question of turning the page on past excesses – in particular too heavy investments in real estate and internationally – to “dedicate more resources to care, support for residents and patients, and staff” , he added.
The plan 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, with a ratio of 0.30 euros of capital for one euro of canceled debt.
The specialized commercial court of Nanterre, in charge of the file, now has two months, renewable once, to validate this project.
In the meantime, the activity of the company continues normally, underlined Mr. Guillot: Orpea will continue in particular to pay its suppliers (of health products, protections or food, for example).
As part of an accelerated safeguard procedure, supplier receivables are not frozen. “Neither the employees, nor the residents and patients are impacted by this procedure”, assured Mr. Guillot.
At the end of the process, Orpea will be 50.2% owned by a consortium led by Caisse des dépôts and including insurers such as CNP Assurances, Maif and MACSF. The plan also provides that all the investors bring 1.55 billion euros of new money to the group, present in 22 countries and which manages some 350 establishments – retirement homes and clinics – in France.