Cirque du Soleil Creditors Win Control; TPG, Fosun Wiped Out (2)

Lenders to Cirque du Soleil Entertainment Group won control of the company in a court-supervised restructuring.

The bid by the creditors’ group, which represents holders of about $760 million in Cirque debt and includes Toronto-based Catalyst Capital Group Inc., must still receive the approval of a Canadian court. Lenders are planning to inject $375 million of new capital into the Montreal-based company to restart its shows.

Under the proposal, first-lien creditors, owed more than $900 million as of March 31, wind up with virtually all of the equity.

“The offer made by our secured lenders is a clear recognition ...