Cirque du Soleil Entertainment Group said yesterday it reached a new purchase agreement with its secured lenders, in a move that would help kick-start the bidding process for the financially strapped circus troupe, Reuters reported. The Cirque said in a statement that it entered into a new stalking-horse purchase agreement with its first-lien and second-lien secured lenders, confirming earlier reports. The Montreal-based Cirque, which grew from a troupe of street-performers in the 1980s to a company with global reach, has slashed about 95 percent of its workforce and suspended shows due to the COVID-19 pandemic. The creditors’ agreement replaces an earlier deal with Cirque shareholders including TPG Capital and Fosun International Ltd which included debt financing from a Quebec government body. A court in the Canadian province of Quebec will be asked on Friday to approve the stalking-horse agreement, which is an opening offer that other interested bidders must surpass if they want to buy the company. The deal allows the creditors to acquire the Cirque’s assets while largely cutting down the company debt, the statement said. Cirque has $1.1 billion in debt across first-lien and second-lien creditors.
