(News Bulletin 247) – Creditors and shareholders are called to vote today on the retirement home operator’s safeguard plan.

This Wednesday marks a crucial step for the restructuring of Orpea. Shareholders and holders of Oceane bonds (convertible bonds exchangeable for new or existing shares) are called upon to vote today on the accelerated safeguard plan for the operator of retirement homes.

“The company has therefore asked Euronext Paris and the Luxembourg Stock Exchange to suspend the listing of all of its financial instruments, pending the publication of the results of the votes of the classes of parties affected (creditors and the shareholders, Editor’s note) on the accelerated safeguard plan proposed by the company”, explained in a press release the group.

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“These will be noted by the judicial administrators appointed to the accelerated safeguard procedure, Maître Hélène Bourbouloux and Maître Thibaut Martinat”, added Orpea.

The stock is expected to resume trading when the company publishes the voting results, which should in principle happen on Thursday before the market opens.

Mega-dilution and negative equity

Remember that Orpea’s financial restructuring project must result in a mega-dilution for its shareholders, of 99.6% or even 99.96%.

Friday evening, the group had published two reports published by the Ledouble cabinet, valuing the company between 6 billion and 7 billion euros in continuity of operation and between 2.6 billion euros and 3.7 billion euros in liquidation.

Following the surge of the title – which had taken more than 30% Monday at the start of the session – the group then provided details, stressing that these estimates related to a value of companies and not equity.

Which quite simply means that in view of the evaluations of the Ledouble cabinet, the value of the company’s equity is very largely negative, given that the group had a gross debt of 9.7 billion euros at the end of December 2022…