Cirque du Soleil: creditors are furious

Cirque du Soleil: les créanciers sont furieux

Of the creditors of the Circus of the Sun, which hold the majority of the huge debt of the company are furious to have been put aside by the current direction of the Circus in its revitalization effort.

According to information obtained, these creditors do not digest the process announced yesterday, under which the current owners of the Circus, the american fund TPG, the chinese group Fosun and the Caisse de dépôt et placement du Québec will be the first to submit a bid for the company.

These creditors, which include the fund’s toronto-based Catalyst Capital, and a dozen other american funds, including CBAM, a company controlled by Todd Boehly, one of the owners of the Los Angeles Dodgers.

On June 9, The Newspaper had reported that this group of creditors had filed a bid of US $ 1.2 billion for the Circus, without asking for any public money.

This offer included the maintenance of the headquarters of Cirque in Montreal, the payment of sums due to workers in the Circus, and the injection of US$ 300 MILLION of new money in the company. Approximately$ 900 MILLION US of debt from the Circus were to be converted into shares.

Who is telling the truth ?

According to a source close to the group, the creditors were mainly against the assertion of the president and ceo of Cirque, Daniel Lamarre, according to which no tenders for the Circus has not yet been filed.

“It is very strange that Daniel Lamarre says that. The Circus has asked for proposals. People have made proposals. The creditors have made proposals. It was very specific, ” says a source close to the group of creditors. According to our information, the current direction of the Circus would not have made any effort in recent weeks to negotiate.

Cirque founder Guy Laliberté, who had also expressed its desire to buy the Circus, has refrained yesterday from any comments. Quebecor, which has also expressed interest, could not be reached yesterday at the end of the day.

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