Has the Pierre & Vacances – Center Parcs rebound come too late? While the group presented, Wednesday 1is December, results weighed down by the Covid-19 but encouraging prospects, its future appears darker than ever.
On November 16, the European leader in leisure residences, looking for buyers, revealed that it had received a single global offer for the entire group: it came from two London funds, Alcentra and Fidera, and a real estate investor specializing in tourism, Atream. The announcement caused its share price to drop 23% in two days. The share is at its lowest level since its IPO in 1999, and only values the company at 61 million euros.
The gap is also large between the optimistic statements of the group a few months ago and the reality of the offers.
Three weeks after receipt of the offer, when the conciliation process opened by Pierre & Vacances with the Paris Commercial Court comes to an end on December 2, the group does not appear in any hurry to act on it. And for good reason: according to information from World, it is quite far from the initial expectations. The offer breaks down into € 200 million in capital contributions and € 150 million in secured debt. A senior debt that would guarantee lenders to be reimbursed as a priority in the event of liquidation.
This requirement reflects the great caution of investors vis-à-vis a group whose net debt stands at 530 million euros, and which will have half a billion to repay in September 2022. A fund that has long studied l The opportunity considers that, given the structure of the debt and the handicaps of Pierre & Vacances, the company no longer appears to be recoverable. The gap is also large between the optimistic statements of the group a few months ago and the reality of the offers.
An agreement promised in early 2022
Pierre & Vacances does “No comments on the backing process” and sticks to its initial schedule: the signing of a final agreement at the beginning of 2022. At the same time, it is trying to attract other candidates, even though the process initially called for offers relating to the entire group.
The Atream-Fidera-Alcentra trio is trying to convince the various creditors to transform part of their debt into capital and to remain committed to their side. The buyers must also count on the leniency of the State, which guaranteed two loans to the tune of 274.5 million euros. A five-year group recovery plan has been submitted.
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