Cirque du Soleil accepts the offer of its lenders

Le Cirque du Soleil accepte l’offre de ses prêteurs

The investment firm toronto-based Catalyst Capital has confirmed on Thursday that Cirque du Soleil had accepted the purchase offer of the company made by a group of lenders.

“We are very pleased to have concluded this agreement with Cirque du Soleil, commented on Thursday, Gabriel de Alba, managing director and partner of Catalyst Capital. The cooperation of the group of creditors has been extraordinary to achieve our objective of recapitalizing and revitalizing the Circus. […] Catalyst, and the group of creditors agree to respect the history of the Circus while preparing the enterprise for a bright future. The bright artistic spirit and innovative Quebec will be at the heart of our plans.”

The Circus must be in the hundreds of millions of dollars to Catalyst, and other lenders. All accounts receivable of the company amounted to $ 2 billion.

Under the proposal, Catalyst, and other lenders would own substantially all of the Circus, which would have the effect of ejecting the current shareholders: the firm’s texas TPG, the chinese fund Fosun and the Caisse de dépôt et placement.

Exit the property in quebec

The property of the Cirque du Soleil would be so completely in Quebec. The offers of the lenders provides for the maintenance of the company’s headquarters in Montreal and the creation of a fund to pay a portion of the amounts owed to employees and workers, freelancers and thanked them.

The lenders promise to inject up to 375 MILLION US$ in the revival of the Circus, and this, without the need of the help of the government.

In their bid filed last month, TPG, Fosun, and the Fund undertook to invest US$ 300 MILLION in the relaunch of the Circus, of which US$ 200 MILLION from a loan of Quebec.

With the offer of the lenders, which now has precedence, the debt of the Circus melt of 1.1 billion US$ to US$ 300 MILLION (excluding other receivables, including amounts due to suppliers).

Contacted by The Newspaper Wednesday, the president of the board of directors of the Circus, Mitch Garber, has not wanted to comment on.

The offers of the lenders must be presented Friday in superior Court. The other potential buyers have until 10 August to show up. Quebecor and Red Moon, owned by Guy Laliberté, studying the folder.

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