The private nursing home group Orpea announced on Monday the launch of a capital increase “of approximately 3.9 billion euros” aimed at erasing part of its debt as part of its financial restructuring.
This capital increase, which must last until November 27 inclusive, aims to erase “the entirety of the unsecured debt”, that is to say the most speculative part of the group's debt. , indicates in a press release Orpea, in great financial difficulty after the book “Les Fossoyeurs” by journalist Victor Castanet published in early 2022.
The work revealed mistreatment of residents, financial irregularities and failings in the management of human resources, under the former management. The group has since been the subject of legal proceedings. The courts rejected on Thursday a final appeal against the financial restructuring procedure, which should result in the arrival of capital in a group led by the Caisse des Dépôts. Orpea's total debt amounts to more than 9 billion euros.
The financial restructuring must involve three successive capital increases, for a total amount of 5.4 billion euros. The first, announced on Monday, will take place at a price of 0.0601 euros per share – a value which “must be considered of little relevance”. Indeed, a second capital increase will take place at a price of 0.0178 euros and a third at a price of 0.0133 euros per share, on dates not yet specified.
Thus, existing shareholders choosing to subscribe to the first capital increase are exposed to a “significant potential loss of value of up to 70% of the invested capital”, warns Orpea. And the second capital increase, at a much lower price, “removes any interest, for an existing shareholder” in subscribing to the first, underlines the group.
Shares issued during the first capital increase which are not purchased by existing shareholders will be allocated to the group's unsecured creditors, to offset the debt. At the end of the operations, a group led by the Caisse des Dépôts, the financial arm of the State, with Maif, CNP and MACSF (mutual health professionals) will hold 50.2% of the capital of Orpea. Creditors will own 49.4% and current shareholders, if they decide not to participate in the capital increases that will be open to them, will have 0.4%.