Orpea heads for worst day ever as it seeks debt talks, warns of more impairments

Clariane SE

26/10/2022 09:39

** Shares in Orpea  ORP.PA  slump 32%, on track for their
worst day ever, after the French care homes company said it
expects more asset impairments as it seeks debt talks
    ** The stock hits its lowest price since March 2004 and sits
at the bottom of France's SBF 120 index  .SBF120 
    ** Orpea estimates asset impairments of 2.1-2.5 billion
euros before tax as of Dec. 31, 2022
    ** It says it has obtained court approval to open a
conciliation procedure with creditors in order to achieve a
"sustainable financial structure" by reducing debt and securing
liquidity needed to continue operations
    ** "ORP now needs to renegotiate its debt in light of its
strategic review and the ongoing inflationary environment as
covenants 'may not be met as they stand' by year-end," says
Jefferies in a note
    ** Peer Korian  KORI.PA  is down 1.4% 
($1 = 0.9967 euros)
 (Reporting by Clement Martinot)
 ((Clement.Martinot@thomsonreuters.com;))