Bank of China provides a €50 million EUR loan to ORPEA for unspecified purposes

Project narrative

On June 1, 2018, the Paris Branch of the Bank of China (BOC) entered into a €50,000,000 EUR bilateral credit agreement with ORPEA S.A. — a France-incorporated health and residential care company headquartered in Puteaux, France — for unspecified purposes. This unsecured loan carried a maturity period of six years and a final maturity date of May 31, 2024. Orpea experienced financial issues, with a major drop in its valuation and allegations of malpractice and abuse at its care homes alleged in a 2022 book. In February 2023, ORPEA announced a financial restructuring plan. BOC, as a lender to ORPEA, claimed €19,751,168.19 EUR in principal and interest before the opening judgement of claims (with additional interest accruing until contracted maturity in the Commercial Court of Nanterre. ORPEA's financial restructuring plan, made between ORPEA, French investors, and institutions representing unsecured creditors (like BOC) was approved by the Commercial Court of Nanterre; the plan involved capital increases, including convert 3.8 billion EUR of unsecured debt into capital, leaving Mutuelle assurance des instituteurs de France and Mutuelle d'assurance des professionnels de la santé with a 50.1% stake in ORPEA.