CIRQUE du Soleil and its secured creditors are close to reaching a agreement on a second stalking horse bid for the financially strapped entertainment group, after lenders opposed a deal with shareholders including TPG Capital and Fosun International, a Canadian court heard today.
Canada’s once high-flying Cirque has received protection from creditors as it restructures after the Covid-19 pandemic forced it to cancel shows and lay off artists. The Montreal-based entertainment company filed for bankruptcy in late June.
Details about the rival bid by secured creditors, which sets the low-end bar for buying the company’s remaining assets, were not disclosed by the parties involved in the dial-in hearing today.
Details are expected to be presented in court next week pending approval from the Cirque board.
Lenders had previously dismissed a stalking horse bid from a group of investors, including private equity firm TPG, and Fosun, a Canadian pension fund and a Quebec government body as inadequate.
The lenders would end up getting a 40% stake in the restructured Cirque, under the TPG consortium’s proposal.
Any stalking horse bid would require court approval.
Cirque had almost US$1.5 bil (RM6.4 bil) in liabilities as of December. – July 11, 2020, Reuters
