Orpea - comment

Orpea have clarified the structure of the previously announced additional facilities and reconfirmed the annual cash sweep mechanism based on disposals. This is a further step in the process of implementing the restructuring plan pursuant to the planned accelerated safeguard proceedings. Although the Company has confirmed that as of 10th March, 51% of the unsecured creditors have acceded to the lock-up agreement, they have not provided any further update on this critical percentage. As previously outlined, the Company intended to file imminently a request before the Commercial Court of Nanterre for the opening of an accelerated safeguard proceeding in order to implement the plan. We expect the Concert’O Group and the Unsecured Creditors Negotiating Group (UCNG) to oppose it during the filing. The dissenting unsecured creditors are hoping to reopen the proposal in order to provide more of the required equity and dilute CDC’s equity stake.