Orpea - comment

Orpea have reached their long stop date of 10th March, and as of that date, 51% of unsecured creditors have acceded to the restructuring plan. Therefore, as planned, Orpea will file in the coming days to commence an accelerated safeguard proceeding in order to implement its financial restructuring plan. We expect the Concert’O Group and the Unsecured Creditors Negotiating Group (UCNG) to oppose it during the filing. The combined group believe they have c.40% of the unsecured debt which has the potential to block a 2/3rd affirmative vote. Additionally, the UCNG hold the view that the OCEANE convertible bonds should be treated as a different class, and hold 36% of these as part of the Group. The dissenting unsecured creditors are hoping to reopen the proposal in order to provide more of the required equity and dilute CDC’s equity stake.

We reiterate that time is not on the dissenters’ side, with the conciliation Process extended for the last time to 25th March and all potential new loan facilities required to meet liquidity needs subject to the deal completing.