Two investors opposed to the debt plan convene the general meeting of Orpea

Nov 9 (Reuters) – Two shareholders who together own more than 5% of Orpea in France (ORP.PA) have called a shareholders’ meeting of the embattled care home group as they try to rally opposition to its planned debt restructuring plan.

“Unprecedented shareholder ruin is emerging,” family business Mat Immo Beaune and investment group Nextstone said in a letter sent to Orpea on Tuesday and reviewed by Reuters.

Orpea said in June that an independent audit had found evidence of financial wrongdoing, and in October warned of asset write-downs and said it had sought talks with creditors.

He declined to comment on Wednesday.

Mat Immo Beaune and Nextstone said in October that a plan to convert 4.3 billion euros ($4.3 billion) of debt into equity was premature and could see Orpea fall into the hands of foreign funds speculative.

In Tuesday’s letter, they also called on France’s Autorité des Marchés Financiers to look into the stock’s “abnormal” performance before and after Orpea’s announcement in October.

“In a context where the share price was relatively stable, it experienced a sharp rise, followed by a dizzying drop of more than 55% in a few days, a direct consequence of the company’s new press release, i.e. several hundred million euros of value destruction,” said the two shareholders.

The AMF said it does not comment on individual cases.

“This letter has raised concerns about the company’s financial profile,” AlphaValue analyst Yi Zhong told Reuters.

French media Agefi announced on Monday that ESG fund Mirova had sold its 4% stake in Orpea.

“It has nothing to do with the action of the two new shareholders, (…) it is purely a reaction to a blurring of the financial visibility of the company,” the service told Reuters on Wednesday. Mirova press.

The Orpea share, which has lost 90% of its value this year, fell 2% around 11:00 GMT.

Reporting by Diana Mandiá Editing by Mark Potter

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Robert D. Coleman