Orpea had already carried out an amicable conciliation procedure this year, which had enabled him to reach an agreement with his banks to ensure its funding. But the group may no longer be able to comply with different factors, such as inflation.
Le Monde with AFP
In the turmoil since the release, in January, of the book by journalist Victor Castanet, Les Fossoyeurs, the group of accommodation establishments for dependent elderly people (EHPAD) Private Orpea announced on Wednesday that it has opened a new procedure amicable conciliation before the Commercial Court of Nanterre, in order to renegotiate his debt with his creditors.
“The company is too indebted due to international and real estate development carried out at a frantic pace, on the initiative of the former general management,” said its new director to the France-Presse (AFP) agency (AFP) General, Laurent Guillot.
“This amicable conciliation procedure allows us to renegotiate with the financial actors the situation of our debt and, at the same time, to protect our employees and residents,” he added. The planned objective would be to “convert part of the orpea debt to capital and to lift money in debt and capital again with investors,” said Guillot.
Orpea had already carried out an amicable conciliation procedure this year, which had enabled him to reach an agreement with his banks to ensure its funding. But the group may no longer be able to comply with different factors, such as inflation. Orpea also anticipates new asset depreciations, estimated between 2.1 billion and 2.5 billion euros, according to a press release. The situation of Orpea was, moreover, “strongly affected by the embezzlement and the ethical shortcomings of the previous management”, insisted Mr. Guillot.
Group transformation plan over three years
The group has decided to complete the complaint against X already filed with justice, this time explicitly targeting the former corporate agent, Yves Le Masne, explained Mr. Guillot. “I do not imagine for a moment that Yves Le Masne (…) did not measure all the responsibility that was his,” commented Mr. Guillot.
Orpea is present in 23 countries and manages more than 350 establishments in France. In the book-investigation, the group is accused of mistreatment towards residents, accounting fraud and questionable practices in terms of human resources.
Justice opened in April a preliminary investigation for institutional abuse and financial offenses, following a report by the government. The group says it has taken measures to modify its practices and plans to detail its transformation plan over three years on November 15.
At the end of September, the Orpea announced that he wanted to “better take care of residents, collaborators and caregivers thanks to an ambitious recruitment and continuing education program”. He plans to recruit 550 people per month by the end of the year, including half of nursing assistants. It aims to increase to 800 monthly recruitments in 2023.
Since the scandal, its title has experienced a dizzying fall on the Paris Stock Exchange. The action, whose course was suspended on Monday, was displayed at 14.74 euros on Friday at the end of the session, a drop of 83 % since the start of the year. But last week, the scholarship course has soared 37 %, without any news or major announcement being able to explain it. The title took around 10 % in each of the first three sessions of the week. Analysts interviewed by AFP had advanced the hypothesis of withdrawal from Paris as possible explanation, while remaining cautious. The rating will resume on Wednesday at the opening of the markets.
The group accused a net loss of 269 million euros over the first six months of the year, weighed down by inflation and asset depreciation.