Photo: Cirque du Soleil
The agreement provides for a commitment of at least five years in order to maintain the headquarters of Cirque in Montreal.
The proposal of the secured creditors of the Cirque du Soleil has received the approval of the Quebec superior Court, Friday, to be considered as a bid leader as part of the auction of the entertainment business.
This establishes the minimum conditions to be met for the filing of rival offerings.
The offer of the group of lenders, led by the toronto firm Catalyst Capital Group, which holds the guaranteed debt of about US $ 1 billion of the Circus, is valued at approximately US $ 1.2 billion, according to the most recent report from the firm Ernst & Young, which acts as a controller in the folder.
Up to US $ 375 million will be made available to the company, which is deprived of revenue due to the sanitary crisis caused by the pandemic COVID-19, which led to the cancellation of 44 shows around the world and the dismissal of some 3,500 people at the end of June.
We will also set up two funds totalling US $ 20 million) to pay the amounts due to ex-workers and craftsmen. The agreement provides for a commitment of at least five years in order to maintain the headquarters of Cirque in Montreal.
This proposal spreads the arrangement valued at approximately 420 million US $ and advertised with the existing 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 (“CCAA”). They were counting on the loan of US $ 200 million offered by the québec government.
In the framework of the auction process, other potential buyers have until August 18 to submit an offer.
The agreement provides that proposals must be fully funded. Their value should be at least US $ 1.5 million compared to the agreement reached with the creditors. Quebecor will not participate in the auction, but the conglomerate of telecommunications has, however, reached out to the creditors. The co-founder of Cirque, Guy Laliberté, who has sold his last shares not later than in February, was also of interest.