(BFM Bourse) – CDC and the group’s creditors do not agree on this operation which must guarantee the survival of the manager of the rest homes, according to AFP. This is the equity conversion value of debt held by a group of investors.
The creditors ofOrpeia and the Caisse des dépôts (CDC) parted ways over a bankruptcy filing overnight as they try to find a settlement over the future of the retirement home giant, we learned from sources close to the negotiations.
At the Paris Stock Exchange, the action Orpeia it fell by more than 7.7% at the close, to 6.83 euros after the publication of this information.
The Caisse des dépôts, the financial arm of the state, has proposed to raise its initial offer to provide fresh money to 1.3 billion euros – 700 million euros at the start – an inside CDC source told AFP.
This is 80% of the total amount (1.5 billion euros) of which Orpeia it needs to continue its business and implement the transformation plan announced in the autumn by its new general manager Laurent Guillot.
The CDC wants control
But discussions of debt restructuring stumble over the value at which unsecured debt in the hands of a group of investors will be turned into equity.
Among these investors, who hold 1.8 billion euros of debt (out of a total of 9 billion of debt), managers and hedge funds such as Anchorage, Boussard & Gavaudan, Carmignac and Eiffel.
The Caisse des dépôts and its allies are demanding government control ofOrpeiashaken by the publication a year ago of the investigative book “Les Fossoyeurs”, which denounced the abuses of residents and the financial embezzlement of former managers.
“We want control to make sure practices change,” a source at the Caisse des Dépôts told AFP. “For us, it’s more of an ethical question than a financial one.” “With partners, mutualists, insurers, we propose to disburse 1.265 billion euros, based on a valuation of the company at one billion euros. This has not been accepted by creditors”, -on tells the CDC. “Today there is no agreement. Our offer remains on the table”, adds the institution.
The group Orpeiaexposed to a risk of liquidity shortage in the first quarter of 2023 and affected by food and energy cost inflation, it has until mid-February to find a solution within the framework of an amicable conciliation procedure.
JM – ©2023 BFM Exchange