Orco has announced that talks with Colony Capital about a financial injection have been terminated. The deal always looked unlikely once Orco’s offer to bondholders on restructuring the developer’s debt was rejected, as this was a condition for Colony to enter the company as a strategic partner. The company remains under court protection in France and appears to be under no immediate pressure to leave it.
Given the lack of debt restructuring to date, the investment conditions have not been met and Colony Capital’s option has expired accordingly. Despite the current market conditions, Colony Capital confirms that the discussions conducted with Orco Property Group management were high quality.