February 2, 2023
On February 1, Orpea SA, a global care-home operator based in France, announced that it reached an agreement in principle with its main investors and unsecured creditors on a major financial restructuring. Willkie represents the “SteerCo” creditor group holding approximately 50% of the company’s unsecured debt worth roughly EUR 3.8 billion.
The restructuring plan is underpinned by a debt-for-equity swap that will eliminate approximately EUR 3.8 billion in unsecured debt. In addition, investors led by French state-owned Caisse des Dépôts et Consignations will inject EUR 1.55 billion in new cash, with EUR 195 million backstopped by the unsecured creditors. The Orpea restructuring, with an equitization of EUR 3.8 billion and a new money injection of EUR 1.745 billion, is one of the largest European restructurings to date.
Following the restructuring, the investors led by Caisse des Dépôts et Consignations will hold approximately 50.2% of the share capital of Orpea and the unsecured financial creditors 49.4%, with non-participating shareholders receiving the remaining 0.4%.
Willkie advised the SteerCo group of five institutions leading the negotiations on behalf of the unsecured financial creditors of Orpea.
Orpea is a leading operator of nursing and retirement homes, as well as outpatient, rehabilitation and mental health care clinics. With operations in 22 countries and more than 72,000 employees and 255,000 patients and residents, the company generated approximately EUR 4.3 billion in revenues in 2021.
The Willkie team is led by partner Lionel Spizzichino and includes partners Gabriel Flandin, Igor Kukhta and Faustine Viala and associate Batiste Saint-Guily.
The restructuring plan is underpinned by a debt-for-equity swap that will eliminate approximately EUR 3.8 billion in unsecured debt. In addition, investors led by French state-owned Caisse des Dépôts et Consignations will inject EUR 1.55 billion in new cash, with EUR 195 million backstopped by the unsecured creditors. The Orpea restructuring, with an equitization of EUR 3.8 billion and a new money injection of EUR 1.745 billion, is one of the largest European restructurings to date.
Following the restructuring, the investors led by Caisse des Dépôts et Consignations will hold approximately 50.2% of the share capital of Orpea and the unsecured financial creditors 49.4%, with non-participating shareholders receiving the remaining 0.4%.
Willkie advised the SteerCo group of five institutions leading the negotiations on behalf of the unsecured financial creditors of Orpea.
Orpea is a leading operator of nursing and retirement homes, as well as outpatient, rehabilitation and mental health care clinics. With operations in 22 countries and more than 72,000 employees and 255,000 patients and residents, the company generated approximately EUR 4.3 billion in revenues in 2021.
The Willkie team is led by partner Lionel Spizzichino and includes partners Gabriel Flandin, Igor Kukhta and Faustine Viala and associate Batiste Saint-Guily.
