(Adds detail and background)
PARIS, Feb 1 (Reuters) - French nursing care homes
company Orpea SA , whose shares lost more than 90% in
value last year after charges of malpractice at its homes, said
on Wednesday that in principle it had reached a financial
restructuring deal with investors.
Orpea said the deal, reached with French state financial
institution Caisse des Depots & Consignations (CDC) and other
investors, would significantly cut its debts by around 3.8
billion euros ($4.13 billion) and give the company a cash equity
injection of 1.55 billion euros.
The main group of investors would hold around 50.2% of
Orpea's capital and unsecured financial creditors would own
49.4%, Orpea said in a statement.
Orpea's shares fell by around 93% in 2022 following the
publication of a book in France that outlined possible
malpractice at its care homes.
French police carried out raids on Orpea care homes last
November, while an independent audit had found evidence of
financial wrongdoing.
Orpea, whose shares have risen around 15% since the start of
2023, has said it has taken steps to improve its business
practices.
($1 = 0.9199 euros)
(Reporting by Sudip Kar-Gupta; Editing by Christopher Cushing
and Nivedita Bhattacharjee)
