Orpea - comment

On a creditor call with Madame Bourbouloux and the Company very little new information was shared. The call mainly amounted to a further appeal to unsecured holders to get organised. While technically Conciliation could be extended at the end of January (commenced on the 25th of October), the new money request requires an urgent solution with cash balances projected to be €350m at year-end and a liquidity shortfall in Q1 next year. But because much of that new money is to go in as junior, as equity, unsecureds are incentivised to hold out, which is probably why we are seeing renewed appeals like the one yesterday. So we think the route must include a pre-pack SFA to make use of cram-down provisions and the plan needs to stand around Christmas / early January.