Bid for Cirque du Soleil dismissed as ‘pure fiction’ by loan companies – Reuters India

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MONTREAL (Reuters) – A stalking horse bid for Cirque du Soleil Entertainment Group was dismissed as insufficient by loan providers for the duration of a Quebec court listening to into the company’s restructuring on Tuesday.

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FILE Image: An artist performs for the duration of the Cirque du Soleil’s Totem clearly show in London’s Royal Albert Hall, January four, 2012. REUTERS/Paul Hackett/File Photo

Canada’s after significant-traveling Cirque gained original security from its lenders, immediately after the COVID-19 pandemic forced the famed circus operator to terminate displays and lay off artists.

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Montreal-based mostly Cirque, which grew from a troupe of road-performers in the 1980s to a business with global arrive at, has slashed about ninety five% of its workforce and suspended exhibits due to the pandemic. The enterprise submitted for personal bankruptcy defense on Monday.

The firm has signed an arrangement with its present investors personal fairness fund TPG Capital, China’s Fosun International Ltd, and Canadian pension fund Caisse de depot et placement du Québec under which the consortium will just take around Cirque’s liabilities and invest $300 million to assist a restart.

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As component of the expenditure, governing administration human body Investissement Québec will provide $200 million in financial debt funding.

The settlement will provide as the “stalking horse” bid in a sale and expenditure solicitation procedure, subject to court docket acceptance.

Joe Pasquariello with the Goodmans law firm, who acted for 1st lien and next lien lenders, said the bid is “not what we’re striving for” in a stalking horse.

“That arrangement with all thanks respect is pure fiction.”

Cirque has obtained 6 non-binding provides, with a deal eyed by September, the courtroom read.

Cirque Chief Govt Daniel Lamarre explained in an interview “we’re open to any option that someone can convey to the desk that will assure the potential of Cirque du Soleil.”

Quebec Excellent Court Choose Louis Gouin agreed to give the business protection from its creditors for ten days. Cirque will seek out its rapid provisional recognition in the United States below Chapter fifteen in the United States Individual bankruptcy Court docket.

Cirque created about $one billion in revenues and $157 million in revenue previous 12 months ahead of the pandemic, he explained.

The business experienced nearly $1.five billion in liabilities as of December 2019.

Reporting By Allison Lampert in Montreal Enhancing by Marguerita Choy and Lisa Shumaker

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