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The AMF has requested the suspension of ORPEA's financial instruments

AI Analysis

Executive Summary

On October 24, 2022, France's Autorité des marchés financiers (AMF) suspended all financial instruments (shares, debt securities, and related instruments) issued by ORPEA S.A., a major European care homes operator, pending disclosure of material information under the European Market Abuse Regulation. This enforcement action reflects serious governance and disclosure failures at a publicly listed company facing allegations of operational malpractice and undisclosed financial difficulties.

What Changed

The AMF's suspension order represents a temporary halt to all trading in ORPEA's financial instruments across regulated markets. This is a precautionary measure under Market Abuse Regulation (MAR) protocols designed to protect market integrity when material non-public information exists. The suspension was lifted on October 26, 2022, upon market opening, following ORPEA's disclosure of an amicable conciliation procedure and anticipated asset impairments. The underlying trigger was ORPEA's failure to promptly disclose: - Financial covenant breaches: The company faced potential acceleration of €3.3 billion in financing lines due to anticipated breaches of "R1" and "R2" financial covenants. - Asset impairments: Anticipated write-downs at December 31, 2022, related to a stalled real estate di

What You Need To Do

  • *For ORPEA (and comparable listed companies)
  • *Immediate disclosure obligations
  • *Ongoing periodic updates
  • *Governance remediation
  • *Creditor communication
  • *Audit coordination

Key Dates

October 24, 2022 - AMF requests suspension of ORPEA's financial instruments before market opening
October 26, 2022 - Trading resumes upon market opening following ORPEA's disclosure of conciliation procedure and financial restructuring plan
November 8, 2022 - Q3 2022 revenue announcement (after market close)
November 15, 2022 - ORPEA to present detailed transformation plan to market
December 31, 2022 - Anticipated asset impairment recognition date

Compliance Impact

Urgency: CRITICAL

Who is Affected

ORPEA S.A.Institutional and retail investorsFinancial creditorsRegulated markets and trading venuesCompliance officers and disclosure committees

Summary

Markets Periodic & ongoing disclosures The AMF has requested the suspension of ORPEA's financial instruments

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