Deprived of income since mid-March due to the COVID-19 pandemic, Cirque du Soleil is taking shelter from its creditors to restructure its debt and revive its activities through a purchase agreement concluded with its current shareholders.
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Backed by the loan of 200 million US dollars offered by Investissement Québec, the Texan fund TPG Capital, the Chinese firm Fosun and the Caisse de depot et placement du Quebec (CPDQ) will inject an additional 100 million US dollars in addition to setting up two funds totaling 20 million to pay the artisans of the entertainment business.
This is the minimum offer to deposit if other players want to get their hands on Cirque, whose debt is around 900 million US dollars.
Its president and chief executive officer, Daniel Lamarre, said on Monday in a telephone interview that five to six groups
are interested in acquiring the business. We should know by mid-September who will be the new owner.
In exchange for debt restructuring, creditors will receive unsecured debt of US $ 50 million in addition to owning 45% of Cirque, which will decrease the holdings of current shareholders.
The health crisis caused by the coronavirus forced the Cirque to cancel, about three months ago, its 44 shows and to lay off almost all of its staff, or around 4,700 people.
More details will follow.
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