Cirque du Soleil has quietly backtracked on Friday on a transfer of assets controversial where valuable assets of the Circus were transferred to the Luxembourg before being brought back to Quebec.
At the end of march, the current owners of the Circus, the american fund TPG, the chinese group Fosun and the Caisse de dépôt et placement du Québec have agreed an emergency loan of US $ 50 million Cirque du Soleil.
To protect this claim, the intellectual property rights in the world of the Circus were taken as a guarantee. These rights have been transferred to a new company in Quebec through Luxembourg, a tax haven.
The manoeuvre had been so irritated at the highest point of the creditors prior to the Circus that were suddenly losing their grip on certain important assets.
The day after this operation, the Circus stopped to pay a lenders and is found in default of payment. The current owners of the Circus were on their side in a good position as creditors of the company.
According to a source familiar with the case, the Circus decided to back off on this operation last Friday. According to our information, the Circus has agreed a new loan of US $ 50 million to creditors earlier of the Circus. This loan replaces the one provided by TPG, Fosun, and the Cashier a few weeks ago.
“They have tried to put assets to the shelter and they got caught. They wanted to test the strength of the creditors and their desire to fight “, according to the same source.
The spokesperson for the Circus, Caroline Couillard, did not want to comment on this topic yesterday. “The process [of restructuring] is following its course. Interested parties had until yesterday to submit their tenders, which will be analysed in the next few days. As it is a confidential process, I will respectfully decline any further request for comments “, is it merely to say to us.