The plan, presented by the new management of Orpea, also aims to improve the practices and the image of the company.
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Retain its employees, sell real estate assets… Orpea, the group of private nursing homes (accommodation establishments for dependent elderly people) in turmoil since the revelations, in January 2022, of the book-investigation The Gravediggersunveiled, Tuesday, November 15, a plan to clean up its financial situation which threatens its future. “The group is exposed to a risk of lack of liquidity during the first quarter of 2023”warned Orpea in a press release.
Orpea starts negotiations with its creditors on Tuesday as part of a conciliation procedure before the Nanterre commercial court, in order to renegotiate its colossal debt of 9.5 billion euros and raise fresh money. In particular, he wants to convert part of his debt into capital. Orpea “expects that, following these operations, at least 20% of its share capital will be held by long-term French institutional investors”he said without giving details of these investors.
This negotiation should enable the group to regain the leeway necessary to implement its transformation plan. This provides in particular for the implementation of a new human resources policy aimed at “retaining” employees (72,000 employees worldwide, including 26,000 in France) and improving the care of residents. “Orpea has moved away from its core business, favoring too rapid international and real estate development, at the cost of excessive indebtedness and a very fragile financial situation”commented its new general manager Laurent Guillot, who arrived four months ago and was quoted in the press release.