On Friday, French nursing care company Orpea (ORP.PA) posted an annual net loss in line with its expected significant asset depreciation.
After independent journalist Victor Castanet’s book shocked France and sparked debate over nursing home care, Orpea had a difficult 2022. It denies widespread misuse.
The corporation requested conciliation talks with creditors and warned of impairments after its net profit fell to 4.03 billion euros ($4.44 billion) in fiscal year 2022 from 65 million euros a year earlier.
The firm, which operates in over 20 countries, blamed asset sales for the net loss.
The group stated Orpea’s real estate portfolio was worth 6.5 billion euros on 31 December 2022, down from 8.4 billion euros in 2021.
“2022 was year of rupture, but it is also the year of re-foundation,” said CEO Laurent Guillot in a call with journalists.
The group also said its net debt at the end of 2025 would be 4.5 billion euros, down from 4.9 billion.
After a deal with state financial institution Caisse des Depots & Consignations (CDC) and other investors, Orpea announced a financial restructuring in February that gave bondholders the majority control. A shareholder group opposed to the safeguard plan called for a general meeting.
No other plan exists. “There is only one plan that gives the company the capital to rebuild and continue,” CEO Guillot stated.
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