Thursday , November 26 2020
Home / Around Canada / Quebec court gives OK to Cirque du Soleil’s ‘stalking horse’ deal to sell itself

Quebec court gives OK to Cirque du Soleil’s ‘stalking horse’ deal to sell itself

Business

A takeover proposal from the Cirque du Soleil's secured creditors has been approved as the benchmark bid for a court-supervised auction of the insolvent entertainment company.

Cirque du Soleil laid off 95 per cent of its staff during the pandemic.(Joshua Sammer/Getty Images)

A takeover proposal from the Cirque du Soleil's secured creditors has been approved as the benchmark bid for a court-supervised auction of the insolvent entertainment company.

The creditor proposal replaces a shareholder offer as the so-called stalking horse bid, which establishes the minimum conditions to be met for potential rival bids.

The offer by a group of debt holders led by Toronto firm Catalyst Capital Group is valued at approximately $1.2 billion US, according to court-appointed monitor Ernst & Young.

Up to $375 million US will be made available to the Cirque whose operations have ground to a halt because of the COVID-19 pandemic, while two funds totalling $20 million US will be set up to pay money owed to former employees and artisans. The agreement also commits to maintain Cirque's head office in Montreal for at least five years.

Other bidders have until Aug. 18 to submit a fully funded offers that are at least $1.5 million US higher than the creditor bid, under a process overseen by the Quebec Superior Court.

Telecommunications conglomerate Quebecor Inc. says it is no longer interested in participating in the auction, while Cirque founder Guy Laliberte, who sold his stake in February, remains interested.

Credit belongs to : www.cbc.ca

index.php

Cirque du Soleil emerges from bankruptcy protection with sale to creditors

Business Cirque du Soleil Entertainment Group says the sale of the company is complete and …