Orpea - comment

Not sure who has blinked first, but reality has appeared to have dawned on the main parties in the Orpea discussions. Discussions have recommenced between the French 3rd party investors (led by Caisse des Depots) and a group (50%) of the unsecured creditors. We expect a deal imminently with the Company requesting the suspension of the trading in its shares and bonds, pending the publication of a press release.

The discussions are likely to focus on what level of post-restructuring equity the new money will receive - it is a foregone conclusion that all of the unsecured creditors will be equitised.