Cirque du Soleil creditors who hold the majority of the company’s colossal debt are furious at having been sidelined by current Cirque management in its recovery effort.
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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 depot et placement du Quebec will be the first to submit an offer for the ‘business.
These creditors include the Toronto fund Catalyst Capital and a dozen American funds, including CBAM, a company controlled by Todd Boehly, one of the owners of the Los Angeles Dodgers.
June 9, The newspaper had reported that this group of creditors had submitted an offer of US $ 1.2 billion for the Circus, without asking for any public money.
This offer included maintaining Cirque’s head office in Montreal, paying amounts owed to Cirque workers, and injecting US $ 300 million of fresh money into the business. About US $ 900 million in Cirque debt was to be converted into shares.
Who is telling the truth?
According to a source close to the group, the creditors are especially against the assertion of the president and CEO of Cirque, Daniel Lamarre, that no offer for the Cirque has yet been made.
“It’s very strange that Daniel Lamarre would say that. Cirque asked for proposals. People have made proposals. The creditors have made proposals. It was very specific, “said a source close to the group of creditors. According to our information, the current Cirque management has made no effort in the past few weeks to negotiate.
Cirque founder Guy Laliberté, who had also expressed his desire to buy Cirque, declined to comment yesterday. Quebecor, who also expressed interest, could not be reached late yesterday.