US$ 200 MILLION “exclusive” to foreign investors

200 M$ US «exclusifs» aux investisseurs étrangers

The quebec groups interested by the revival of the Circus of the Sun are denied access to financial assistance of US $ 200 million promised by Quebec.

On the 26th of may last, the minister of the Economy announced in a press conference that he would be “available” for a loan to all groups ” if the conditions are met “. “If, in the process, other shareholders were to win the acquisition of the Circus, this program could also be available “, said Pierre Fitzgibbon.

However, the government has granted the loan exclusively to the group of shareholders of the Circus, led by the american investment fund TPG Capital. Other interested groups, including the conglomerate Quebecor, have not had access to the details of this financial support.

In a letter filed in superior Court, prosecutors Investissement Québec have argued that only the “tenderer whose tender has been accepted by the Cirque du Soleil and approved by the Court” could have access to the details of the loan of US $ 200 million.

Transparency

At least one group interested in the revival of the Circus has asked Investment Quebec to have access to the details of the public funding.

In a letter dated July 6 and filed in Court, the prosecutors of the Quebecor has asked for a copy of the agreements between Investissement Québec and the group of shareholders, led by TPG. The request has been rejected by Investissement Québec.

This information would have enabled to evaluate the possibility to include the government support in a bid to revive the Circus.

Quebecor has pointed out that ” the Government of Québec and Investissement Québec must be transparent and allow potential buyers to have all the relevant information “.

Recovery

Thursday evening, Quebecor stated that it was withdrawing from the process of buying Cirque du Soleil. The company now wishes to participate in the recovery by offering its expertise to other creditors prepare to take control of the flagship québec business.

Called for comment, the ministry of Economy has indicated that only the groups “skilled” will be able to have access to the details of the loan.

“We will disclose the terms of our support of$ 200 Million to all qualified groups who will make the request, and this, in a timeframe that will allow them to submit bids in the process “, has advised the cabinet of Pierre Fitzgibbon by e-mail.

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