Orpea - comment

We await a full press release from Orpea, but snippets appear to be leaked indicating the Caisse des dépôts will take a 50.2% stake post-restructuring. This was our base case but what is surprising is that the unsecured creditors are only equitising 70% of their claim. We struggle to see sufficient enterprise value for Orpea to sustain a capital structure with any unsecured debt remaining on the balance sheet, especially from an asset coverage basis. We await further details.