Canada’s Cirque du Soleil Entertainment Group is poised to accept a recapitalization offer from a group of creditors, which would see them inject at least $300 million of new capital in the financially strapped company, Bloomberg News reported on Tuesday.
The offer will be formally presented to a committee of Cirque’s board on Tuesday night, the report said, citing sources.
The proposal would see first-lien creditors, who were owed more than $900 million as of March 31, wind up with virtually all of the company’s equity, the report added.
Lenders had previously dismissed a stalking horse bid from a group of investors, including private equity firm TPG, China’s Fosun, a Canadian pension fund and a Quebec government body, as inadequate.
The offer from the lenders would replace the stalking horse bid made by TPG and other Cirque shareholders in June, the Bloomberg report said.
The Montreal-based entertainment company filed for bankruptcy protection at the end of June as the COVID-19 pandemic forced it to cancel shows and lay off artists.
Cirque was not immediately available to comment on the Bloomberg report.
Source: Reuters.com