The private group of residences and residences for the elderly Orpea announced this Wednesday that it has obtained an additional 600 million euros of credit to “cover its liquidity needs” until the completion of a capital increase provided for in an agreement signed in mid-FEBRUARY.
This sum will be contributed by “lenders including the main banking partners” that the company had already used last June as part of a conciliation protocol, Orpea reported in a press release.
The additional credits “will be made available to the companies Niort 94 and Niort 95, which will hold part of the group’s real estate assets,” explained Orpea, which is waiting for “the opening of an accelerated safeguard procedure in March.”
Of these 600 million, a first tranche of 200 million will mature on December 31, 2023, or “five business days following the completion of all capital increases.” The rest, 400 million, is a “revolving credit line” maturing on June 30, 2026.
Erase 3,800 million euros of debt
Regarding its existing financing plan, Orpea has also committed to sell “1.25 billion euros of real estate assets (in gross value without tax)” before December 31, 2025.
In turmoil for a year, after a financial restructuring, Orpea signed an agreement in February that allowed it to take over the control of a group led by the Caisse des dépôts (CDC), accompanied by insurers, including CNP Assurances, Maif and MASCF, as well as as a group of creditors.
This agreement provides for erasing 3,800 million euros of the group’s debt out of a total of 9,700 million, through its conversion into capital. It also foresees that investors will contribute 1,550 million euros of fresh money to the group, present in 22 countries and which manages some 350 establishments in France (Ehpad, clinics, etc.).
Opened in October, the friendly conciliation procedure aimed at convincing certain creditors to join this debt restructuring agreement, was recently extended until March 25. The deadline to join the “lockdown” deal is set for Friday, March 10. The CDC has also been sued by the Whitebox, Kyma Capital, LMR Partners and Fortress Investment Group funds, as Letter A said on Tuesday, for this lock-up agreement.
Source: BFM TV
