Group debt amounted to more than 9.5 billion euros as of September 30.
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After the scandal, the financial setbacks. In turmoil since the release in January of a book-investigation denouncing its practices, the group of private nursing homes Orpea announced, Wednesday, October 26, the opening of a new amicable conciliation procedure before the Commercial Court of Nanterre to renegotiate its debt with its creditors.
This debt amounted to more than 9.5 billion euros as of September 30. “The company is too indebted due to the international and real estate development carried out at a frantic pace, at the initiative of the former general management”justified the new director general of Orpea, Laurent Guillot, to AFP.
“This amicable conciliation procedure allows us to renegotiate with the financial players the situation of our debt and at the same time to protect our employees and residents”, he adds. This so-called preventive procedure allows a company in difficulty to negotiate with its creditors in a confidential manner, under the aegis of a conciliator appointed by the president of the commercial court.
Orpea had already benefited this year from an amicable conciliation procedure which had enabled it to reach an agreement with its banks to ensure its financing. But the group may no longer be able to comply due to various factors, such as inflation.