The minister of the Economy Pierre Fitzgibbon announced on Tuesday that a financial support for the Cirque du Soleil of up to 280 million $, in Quebec city, Tuesday.
May 26, 2020 14h34
Updated at 17h34
Québec gives green light to a loan of$ 280 Million at Cirque du Soleil
The canadian Press
Québec comes to the rescue of the Circus of the Sun by offering him a loan of 280 million CAN $ — with a provision allowing him to eventually acquire the business of entertainment — if the restructuring proposed by the existing shareholders a reality.
An agreement was entered into between Investissement Québec (IQ), the financial arm of the quebec government and the existing shareholders, or the investment fund texas TPG Capital, the chinese company Fosun and the Caisse de dépôt et placement du Québec (CPDQ).
“In the circumstances, it is a very beautiful transaction, said the minister of Economy and Innovation, Pierre Fitzgibbon, Tuesday, making the announcement in a media scrum that was on the re-opening of shopping centres. The reason why we have supported the existing shareholders, is that we wanted to secure the recovery of the Circus in Quebec. One day, the Circus will become detained in quebec.”
In addition to studying all of the scenarios, including the one where it would be shielded from its creditors, the company started its efforts to find an investor or a buyer, or renegotiating another injection of capital from its current owners.
The loan will be enforceable only if it is the recovery plan for the current shareholders, which is retained, said Mr. Fitzgibbon. Thus, if a new buyer does not need a boost in the government, the money would not be paid.
“If, in the process, other shareholders [would acquire] the Circus, this money-there [the 280 million $] might also be available”, however, has reported the minister.