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Cirque du Soleil accepts recapitalisation offer from creditors
[MONTREAL] Cirque du Soleil accepted a recapitalisation offer from its creditors on Thursday, after an earlier deal with shareholders including TPG Capital and Fosun International was dismissed by lenders.
Creditor Catalyst Capital Group said the entertainment company had accepted its "stalking horse bid" for its assets.
A "stalking horse" bid is an opening offer that other interested bidders must surpass if they want to buy the company.
The deal will inject up to US$375 million into the financially-strapped Cirque du Soleil, a source familiar with the matter said.
The Montreal-based company, which grew from a troupe of street-performers in the 1980s to a company with global reach, has slashed about 95 per cent of its workforce and suspended shows due to the pandemic. The company filed for bankruptcy protection on Monday.