UK Markets open in 18 mins
  • NIKKEI 225

    27,693.65
    +184.19 (+0.67%)
     
  • HANG SENG

    21,192.66
    -467.81 (-2.16%)
     
  • CRUDE OIL

    73.91
    +0.52 (+0.71%)
     
  • GOLD FUTURES

    1,887.90
    +11.30 (+0.60%)
     
  • DOW

    33,926.01
    -127.89 (-0.38%)
     
  • BTC-GBP

    18,951.56
    -541.41 (-2.78%)
     
  • CMC Crypto 200

    525.16
    -11.70 (-2.18%)
     
  • Nasdaq

    12,006.96
    -193.84 (-1.59%)
     
  • ^FTAS

    4,339.71
    +36.82 (+0.86%)
     

Care homes company Orpea says talks on debt restructuring fail

Logo of French care homes company Orpea in Reze

PARIS (Reuters) - French care homes company Orpea, which has been plagued by multiple scandals including allegations of malpractice at its care homes, said on Thursday it had failed to reach an agreement with investors and creditors over a debt restructuring at the company.

"The respective expectations of the consortium of investors and the group of unsecured financial creditors concerned in terms of valuation do not allow to reach an agreement," it said in a statement, adding that the negotiations had ended.

As part of its debt restructuring plan, the company had held discussions with French third-party investors led by the Caisse des Dépôts et Consignations and a group of creditors holding about 50% of its 3.8-billion-euro ($4.12 billion) unsecured debt.

In November, two minority shareholders had opposed the restructuring plan, which includes conversion of debt into equity, warning that investors could see the value of their holdings destroyed.

Orpea's shares have shed about 90% in value in a year, as it grapples with allegations of mistreating the elderly in its care homes, which led to police raids in November.

An independent audit had also found evidence of financial wrongdoing, including inflated labour expenses and suspiciously large payments to third parties, Orpea said in June.

($1 = 0.9232 euros)

(Reporting by Sudip Kar-Gupta and Olivier Sorgho; editing by Deepa Babington; Editing by Chris Reese and)