Orpea - comment

The company has refused a recent request from a group of shareholders for a General meeting.  The shareholders had requested the ability to appoint a director to the Nanterre Commercial Court to protect minority shareholders.  We have been viewing the shareholders’ actions as a futile attempt to halt the financial restructuring which dilutes existing shareholders substantially.  The Company highlight that any safeguard proposal drawn up by the Company with the assistance of the judicial administrators would be submitted to a vote of affected classes, including shareholders.  

What is missing from Orpea is any update in discussions the Company/administrators are having with dissenting unsecured creditors.  There has been no update since the long stop date of 10th March when only 51% of the Company’s unsecured creditors adhered to the lock-up agreement.