Photo: Valérian Mazataud The Duty
According to the offer to purchase, the debt of the Circus would be reduced to approximately US $ 300 million and a fund would also be put in place to retain employees and pay of former workers and artisans.
Cirque du Soleil has accepted the most recent offer to purchase made by its creditors, and in which quebec taxpayers will not have to finance the revival of the business of entertainment.
This agreement must be submitted Friday before the Quebec superior Court and shall receive court approval in order to be considered as a bid leader at rise of the curtain of the auction of the company — a process that should culminate around mid-August.
“The cooperation of the group of creditors has been extraordinary in order to achieve our goal to recapitalize the Circus,” said Gabriel de Alba, the executive director and partner of Catalyst Capital Group (the main creditor) in a statement on Thursday. Catalyst and the creditors agree to respect the history of the Circus. “
This new offering will set aside the agreement, valued at approximately 420 million US dollars and announced with the current shareholders, the fund texan TPG Capital, the chinese company Fosun and the Caisse de dépôt et placement du Québec, June 29, when the Circus turned to the Law on arrangements with creditors of companies. They were counting on the loan of US $ 200 million offered by the québec government.
The group of creditors, who holds the guaranteed debt of approximately US $ 1 billion of the Circus, infuse up to us $ 375 million US money and keep the company’s head office in Montreal, according to a source aware of the dossier, but who is not authorized to speak publicly. The debt would be reduced to approximately US $ 300 million and a fund would also be put in place to retain employees and pay of former workers and artisans.
Private income since mid-march due to the health crisis caused by the pandemic COVID-19, the Circus has canceled its 44 performances and has fired about 3480 people. Its claims totalling more than 1.6 billion US dollars.
During the bidding process, other potential buyers can submit an offer. In the context of a hearing before the superior Court, last Friday, the lawyer representing Quebecor had hinted that the conglomerate had to try his luck.