Cirque Du Soleil Purchase Agreement
With respect to the conclusion of the sale agreement with its lenders, Cirque and its existing shareholders TPG, Fosun and the Caisse de dépét et placement du Québec (shareholders), it was agreed to terminate each other the asset sale contract announced on June 29, which included the creation of a $15 million own staff fund to provide financial support to the sacked employees. , and a special contractual fund of $5 million to pay the company`s commitments to independent artisans and artists. The agreement proposed by the shareholder, which had set the bar for other offers, provided a means of survival after the forced closure of all shows resulting from the COVID 19 pandemic, through the granting of funding, support and a clear roadmap for the restart. With respect to the notification, Cirque du Soleil announced that it had entered into with its existing shareholders TPG, Fosun and Caisse de dépit et placement du Québec (the “sponsors”) and Investment Quebec as a debt provider (“sales contract”), under which the sponsors acquired essentially all of the company`s assets. , debt and equity and would create two funds totalling $20 million to provide additional facilities to affected employees and independent contractors. Subject to the agreement of the Court of Justice, the sale contract serves as an offer of stalking horse in the context of a sale and appeal procedure (SISP) appointed by the Court of Justice and the monitor appointed by the Court. The sale contract defines the acceptable land or minimum bid for the auction of the business under the authority of the court in accordance with the SISP, which is designed to obtain the highest available or otherwise best value for the entity and its stakeholders. (Reuters) – Cirque du Soleil Entertainment Group said on Thursday it was reaching a new purchase agreement with its secure lenders, in a step that would help boost the bidding process for the financially troubled circus troupe. The new agreement replaces the agreement reached by Cirque du Soleil and its current shareholders — American TPG, Chinese Fosun and Caisse de dépôt et placement du Québec (CDPQ) — at the end of June. Montreal, QC, July 16, 2020 – Cirque du Soleil Entertainment Group (“Cirque du Soleil,” “Cirque” or “Company”) announced today that it has entered into a new contract to sell “Stalking Horse” (the “sales contract”) with a group of first and second earners (the “Lenders”), according to which the lenders would essentially acquire all of the company`s assets in order to repay the first and second. The creditors` agreement replaces an earlier agreement with Cirque shareholders, including TPG Capital and Fosun International Ltd 0656.HK, which included debt financing by a government agency in Quebec. In a statement, Cirque said it had entered into a new contract to sell “Stalking Horse” with its front-line and second-line lenders, confirming previous reports.