The situation with solving Cirque du Soleil’s debt situation and getting back to a functional company is complex and ever-unfolding. Here are three articles that attempt to explain the ins and outs…

Cirque du Soleil Poised to Accept Creditors’ Bid, Sidelining TPG

Cirque du Soleil Entertainment Group, which is restructuring under court protection in Canada, is poised to accept a recapitalization offer from a group of lenders, people with knowledge of the matter said.

The company filed for bankruptcy protection last month after the coronavirus pandemic forced it to close shows around the world, triggering a fight for control of one of the best-known brands in live performance.

The ad hoc committee of creditors, which represents holders of about US$760 million (S$1.06 billion) in Cirque debt, has been working on a “credit bid” that would see lenders inject at least US$300 million of new capital into the global acrobatic troupe to eventually restart its shows. The offer will be formally presented to a committee of Cirque’s board Tuesday night, the people said…

Read the Full Article at Straits Times

Cirque du Soleil Reaches Purchase Deal with Secured Lenders

Cirque du Soleil Entertainment Group said on Thursday it reached a new purchase agreement with its secured lenders, in a move that would help kick-start the bidding process for the financially strapped circus troupe.

The Cirque said in a statement that it entered into a new “stalking horse” purchase agreement with its first-lien and second-lien secured lenders, confirming earlier reports.

The Montreal-based Cirque, which grew from a troupe of street-performers in the 1980s to a company with global reach, has slashed about 95% of its workforce and suspended shows due to the COVID-19 pandemic.

The creditors’ agreement replaces an earlier deal with Cirque shareholders including TPG Capital and Fosun International Ltd (0656.HK) which included debt financing from a Quebec government body…

Read the Full Article at Reuters

Cirque du Soleil Positions Lenders to Take Control from TPG

Cirque du Soleil Entertainment Group is preparing to reject a buyout offer from shareholders in favour of a competing proposal from lenders that have offered to supply $375m in new loans while taking control of the bankrupt company, according to people familiar with the matter.

The restructuring proposal from Cirque’s top lenders would supersede an offer by shareholders TPG Capital, Fosun International and Caisse de dépôt et placement du Québec, which had hoped to preserve their stakes in the company without fully repaying its debt.

The Montreal-based company’s board is close to accepting the lender offer as the lead bid, subject to better offers, people familiar with the matter said.

Cirque and TPG declined to comment.

Any sale of the company requires approval from the Montreal court overseeing Cirque’s bankruptcy. The company could continue to entertain other proposals, the people said…

Read the Full Article at Private Equity News