Shareholders including the Texan fund TPG Capital, the Chinese firm Fosun and the Caisse de depot have presented a so-called stalking horse bid valued at about US$420 million.The lenders have signalled that they intend to oppose the shareholder agreement, calling it "doomed to fail."
A representative of monitor Ernst & Young told the court that it believes a negotiated agreement was the "optimal scenario for both parties." The creditors, who hold about US$1 billion in secured debt, have until Tuesday to submit their proposal to advisers of the company, which has been deprived of income since its 44 shows were cancelled mid-March because of COVID-19 and prompted the layoff of some 3,480 employees.
Details of the creditors' proposal have not been released, but according to what has already been disclosed, the offer would maintain Cirque's head office in Montreal and would not seek financial support from the Quebec government.This report by The Canadian Press was first published July 10, 2020
The taxpayers better not be bailing them out!