Orpea unsecured creditor group says will appeal restructuring plan approval (updated)
25/07/2023 12:18
(Adds share price in para 3.)
LONDON, July 25 (Reuters) - A group of Orpea's ORP.PA
unsecured creditors will appeal a court decision to approve the
French nursing care provider's restructuring plan, according to
a statement issued late on Monday.
Earlier on Monday, Orpea had an accelerated safeguard plan
approved by the Nanterre Commercial Court, enabling the
implementation of an agreement signed in February under which
France's public lender Caisse des Depots et Consignations (CDC),
will take control of the group, making the French state its main
shareholder.
Orpea's shares rose almost 6% on Tuesday, having hit a
nearly one month-high at 2.16 euros earlier in the day.
In its statement, the unsecured creditor group -- known as
The Support Club -- said that it acknowledged the court's
decision to approve the plan.
However, it noted that the restructuring plan "follows an
illegal process and numerous unofficial agreements between
certain parties."
The statement added that no alternative to the CDC offer was
considered by Orpea, when other options could have been found
that would have better suited creditors and shareholders.
The court decision "unjustly forces creditors into
surrendering value in Orpea to the Caisse des Dépôts et
Consignations at a significant undervaluation," the statement
said.
The Support Club, is a group of funds managed by Fortress,
Kite Lake, Kyma Capital, LMR Partners and Whitebox Advisors
representing 497 million euros ($549.78 million) of Orpea’s
unsecured claims. Together they manage over $62 billion in
assets under management.
Orpea did not immediately respond to a request for comment.
($1 = 0.9040 euros)
(Reporting by Chiara Elisei; editing by Dhara Ranasinghe and
Amanda Cooper)
((Chiara.Elisei@thomsonreuters.com;))