# Orpea slides to annual loss of 4 billion euros on asset depreciation
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-12
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Orpea reports 4 billion euro loss on asset depreciation
Meta Description: Discover the latest on French nursing care provider Orpea's annual loss of 4 billion euros due to asset depreciation and scandals. Get the full story here!
URL: https://financedigest.com/orpea-slides-to-annual-loss-of-4-billion-euros-on-asset-depreciationhtml

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# Orpea slides to annual loss of 4 billion euros on asset depreciation

By Diana Mandia and Federica Mileo

(Reuters) -French nursing care provider Orpea, hit by multiple scandals including allegations of malpractice at its care homes, on Friday reported an annual net loss, in line with the anticipated strong depreciation of its assets.

Orpea witnessed a tough 2022, following the publication of a book by journalist Victor Castanet, which sent shockwaves through France and much soul-searching over how the elderly are treated in nursing homes. It has rejected the allegations of widespread abuse.

The company, which has requested conciliation talks with creditors, said its net profit turned to a loss of 4.03 [billion euros](https://www.financedigest.com/mexicos-femsa-launches-second-3-billion-euro-sale-of-heineken-shares.html "Mexico’s FEMSA launches second 3 billion euro sale of Heineken shares") ($4.44 billion) in the fiscal year 2022 versus a gain of 65 million euros a year earlier.

The net loss is mainly due to asset disposals.

At 31 December 2022, Orpea’s [real estate](https://www.financedigest.com/investing-in-real-estate-how-to-generate-passive-income.html "Investing in Real Estate: How to generate passive income") portfolio was valued at 6.5 billion euros, versus 8.4 billion euros at the end of 2021, the group said.

The group also said its net [debt is now projected at 4.5 billion euros](https://www.financedigest.com/dollar-rises-as-u-s-debt-bill-passes-house-euro-slides-ahead-of-inflation.html "Dollar rises as U.S. debt bill passes House, euro slides ahead of inflation") at the end of 2025, versus 4.9 billion euros previously announced.

This adjustment is due to the integration of [real estate](https://www.financedigest.com/why-tokenisation-of-real-estate-will-survive-crypto-winter.html "Why tokenisation of real estate will survive crypto winter") disposals in the restructuring plan, the group added.

Orpea announced in February a financial restructuring giving bondholders the lion’s [share of control after a deal](https://www.financedigest.com/vaccine-maker-valnevas-shares-slump-after-uk-ends-covid-19-deal.html "Vaccine maker Valneva’s shares slump after UK ends COVID-19 deal") reached with state financial institution Caisse des Depots & Consignations (CDC) and other investors, but a shareholder group that opposes the safeguard plan called for a general meeting.

“There is only one plan, there is no alternative plan. There is only one plan that [provides the company with the necessary capital](https://www.financedigest.com/nets-acquires-polish-online-payment-service-providers-dotpay-ecard-from-mci-capital.html "Nets acquires Polish online payment service providers Dotpay/eCard from MCI Capital") to rebuild and continue to operate,” CEO Guillot said.

Three capital [increases envisaged as part of the restructuring will lead to a theoretical unit](https://www.financedigest.com/simalliance-members-report-shipments-of-4-9-billion-sims-in-2017-while-estimated-total-available-sim-market-in-2017-increases-2-75-to-5-6-billion-units.html "SIMalliance Members Report Shipments of 4.9 Billion SIMs in 2017, while Estimated Total Available SIM Market in 2017 Increases 2.75% to 5.6 Billion Units   ") value of less than 0.02 euros per share, versus 0.20 euros announced in February, Orpea added.

Orpea’s [shares fell 4.2% to 2.48 euros](https://www.financedigest.com/asia-shares-subdued-yen-shunned-as-euro-shines.html "Asia shares subdued, yen shunned as euro shines") at 0730 GMT.

($1 = 0.9084 euros)

(Reporting by Diana Mandiá and Federica Mileo; editing by Uttaresh Venkateshwaran and Sonali Paul)


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