Orpea Shares Still Trade 10 Times Above Post-Restructuring Value
- Nursing-home operator is in court-supervised overhaul
- Orpea has warned shareholders that stakes will be diluted
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Orpea SA’s shares are trading 10 times above where the embattled care-home operator says they should be given the massive financial restructuring that’s looming for the company.
The stock dropped as much as 15% Monday after Orpea said it entered an accelerated court-supervised procedure to carry out the revamp, which will result in debtholders owning most of the shares. The deal includes converting €3.8 billion of unsecured debt into equity and raising another €1.36 billion of capital through a group of investors led by public lender Caisse des Dépôts.