Orpea says majority of classes support accelerated safeguard plan

By Wendy Van Sickle

Columbus, Ohio, June 28 – Orpea said it received word from judicial administrators that six of the 10 affected parties approved its draft accelerated safeguard plan at meetings on Wednesday, according to a news release.

For approval, a two-thirds majority vote was required.

Orpea said three other classes, including its shareholders, supported the draft accelerated safeguard plan by a simple majority, while the Oceane class voted 49.2% in favor and 50.8% against the plan. Holders of €492 million of Oceanes had voting rights, and holders of €509 million, or 97%, of those Oceanes participated in the vote.

In the coming days, the company said, it will apply to the Nanterre Commercial Court for approval of the accelerated safeguard plan through a cross-class cram down.

If the court considers that the legal conditions are met, Orpea could finalize its financial restructuring in the second half of 2023.

Assuming that the plan is approved by the court, existing shareholders should hold, after completion of the capital increases and in the absence of reinvestment, around 0.04% of the Orpea’s share capital.

Orpea is a Paris-based long-term care facility operator.

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