Cirque du Soleil Gets Stalking Horse

Cirque was obtained by TPG and Fosun, a Chinese financial investment group, and Caisse de dépôt et placement du Québec (CDPQ), a Canadian supervisor of public pension, in April 2015.

As a part of its restructuring and plan to restart operations, Cirque will end around 3,500 staff members previously furloughed in March following the halt in income triggered by COVID-19 government-mandated shutdowns. This action permits employees to optimize payment that they can obtain from the Canadian Federal Wage Earners Protection Program and other joblessness help programs. Certain personnel active with Cirques Las Vegas and Orlando reveals– which will restart faster than other companys shows– are not amongst the terminated workers.

Caisse de dépôt et positioning du Québec is an institutional financier that handles funds mainly for para-public and public pension and insurance strategies. As of December 2019, it held C$ 340 billion in net properties.

” For the previous 36 years, Cirque du Soleil has actually been a rewarding and extremely successful organization. With zero revenues given that the forced closure of all our shows due to COVID-19, management had to act decisively to secure the businesss future,” stated Daniel Lamarre, the president and CEO of Cirque. “The arrangement supplies a course for Cirque to emerge from bankruptcy protection as a stronger company. I anticipate restoring our operations and coming together to when again develop the magical spectacle that is Cirque du Soleil for our countless fans worldwide.”

In reaction to the interruption and required program closures as an outcome of the COVID-19 pandemic, Cirque du Soleil Entertainment Group has filed for protection from lenders in Canada– under the Companies Creditors Plan Act and will look for protection in the United States under Chapter 15 of the United States Insolvency Code.

Fosun, openly traded on the Hong Kong stock exchange, is a Chinese conglomerate with global financial investments in healthcare, tourism, style companies and banks. Fosun was established in 1992 and is headquartered in Shanghai, China.

Cirque du Soleil (” Circus of the Sun”) is a Canadian home entertainment business and among the biggest theatrical manufacturers worldwide. Annual profits– throughout regular times– are estimated at more than US$ 800 million. Cirque was established in 1984 by two previous street entertainers, Guy Laliberté and Gilles Ste-Croix, and is headquartered in Montreal.

Under the stalking horse arrangement, TPG, Fosun, and CDPQ would get Cirque for US$ 300 million through a combination of financial obligation, cash, and equity. As part of the US$ 300 million, Investissement Québec will supply US$ 200 million in debt funding to support the suggested acquisition. Cirques existing secured lenders will get US$ 50 million of unsecured, takeback financial obligation in addition to a 45 percent equity stake in the restructured company.

Cirque has actually participated in a “stalking horse” purchase contract with TPG, Fosun, and CDPQ, as well as Investissement Québec, a Montreal-headquartered company development company that provides advisory and capital (loans, loan guarantees and equity financial investments) to companies aiming to start or expand their activities in Quebec.

TPG was established in 1992 and makes financial investments throughout North America, Europe, Asia, and Australia. Sectors of interest include industrials, retail, customer, monetary services, travel and entertainment, technology, interactions and media, and healthcare.

Cirque is being advised by Montreal-based Stikeman Elliott, Chicago-based Kirkland & & Ellis, Montreal-based National Bank Financial and New York City-based Greenhill & & Co

. Personal Equity Professional|July 1, 2020

theatrical production

With zero earnings considering that the forced closure of all our programs due to COVID-19, management had to act decisively to secure the companys future,” stated Daniel Lamarre, the president and CEO of Cirque. “The agreement offers a path for Cirque to emerge from insolvency defense as a stronger company.

Cirque du Soleil (” Circus of the Sun”) is a Canadian home entertainment company and one of the largest theatrical manufacturers in the world. Cirques existing protected creditors will get US$ 50 million of unsecured, takeback debt in addition to a 45 percent equity stake in the restructured business.

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