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Cirque du Soleil announces new stalking horse bid deal with lenders
By Caroline Salls
Pittsburgh, July 16 – Cirque du Soleil Entertainment Group announced Thursday that it has entered into a new stalking horse purchase agreement under which a group of its existing first-lien and second-lien secured lenders would acquire substantially all of the company’s assets in settlement of its first-lien and second-lien debt.
According to a company news release, in connection with the lender agreement, Cirque du Soleil and existing shareholders TPG, Fosun and Caisse de depot et placement du Quebec agreed to mutually terminate the asset purchase agreement announced on June 29.
As previously reported, the terminated shareholders’ agreement called for the creation of a dedicated $15 million employee fund to provide financial assistance to terminated employees, and a dedicated $5 million contractor fund to pay outstanding obligations to artisans and freelance artists.
Cirque du Soleil said the lenders’ stalking horse agreement replicates the shareholders’ proposal by providing for the establishment of two funds totaling $20 million to provide relief to impacted employees and independent contractors. It also includes undertakings to maintain the businesses’ headquarters and to have its chief executive officer be based in Montreal.
The Superior Court of Quebec will be asked to approve the selection of the lenders as stalking horse bidder and the company’s sale and investment solicitation process at a hearing scheduled for July 17.
The company is being represented by Stikeman Elliott LLP, Kirkland & Ellis LLP, National Bank Financial Inc. and Greenhill & Co.
Cirque du Soleil Entertainment Group is a Montreal-based live entertainment company. The company filed bankruptcy on July 1 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 15 case number 20-11719.
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