Orpea - comment

On Friday, Orpea entered into an Accelerated Safeguard procedure, in order to implement its restructuring plan. Note that the time is limited to a maximum of 4 months, with an initial 2 months observation period. As part of the press release, management has reiterated the plan as previously outlined.

However, more importantly, it appears only 51% of the unsecured creditors have adhered to the plan, as at 10th March 2023. Voting of the affected parties, including shareholders, is expected to be end of May/early June. In accordance with the provisions of the French Commercial Code, the draft financial restructuring plan will be submitted to the approval of a two-thirds majority of the votes expressed by shareholders of the Company. In the event that the restructuring plan is not approved by a two-thirds majority of the votes expressed by the shareholders, it may, in accordance with the French Commercial Code, be ordered by the Court at the request of the Company or the administrator with the agreement of the Company and be imposed on the shareholders, subject to compliance with the conditions set out.