Orpea draws first 200 million euros from new financing as restructuring plan continues

(Reuters) - French company Orpea, hit by allegations of malpractice at its care homes and a sharp drop in valuation, said on Friday it made a drawdown of 200 million euros ($214.24 million) from new financing by its main banking partners.

Orpea said it will use the funds to finance and refinance corporate purposes of its real estate Niort94 subsidiary, including the reimbursement of the unit's debt to its parent company.

Orpea had a tough 2022, after the publication of a book by journalist Victor Castanet led to much soul-searching over how the elderly are treated in nursing homes in France. The company has rejected the allegations of widespread abuse.

In February the group announced a financial restructuring plan giving bondholders the lion's share of control after a deal was reached with state financial institution Caisse des Depots & Consignations (CDC) and other investors.

The company said on Friday it is continuing with the execution of the restructuring agreement.

($1 = 0.9335 euro)

(Reporting by Olivier Sorgho in Gdansk; Editing by Matthew Lewis)