The private equity giant that rode Cirque du Soleil to the brink of bankruptcy now wants to share in the spoils, The Post has learned.…
The private equity giant that rode Cirque du Soleil to the brink of bankruptcy now wants to share in the spoils, The Post has learned.
Texas-based TPG Capital has positioned itself to make money from a highly anticipated Cirque du Soleil bankruptcy by turning itself into a lender in a last-minute maneuvering that has the company’s existing lenders crying foul, sources said.
On March 30, the entertainment company, which boasts TPG as its controlling shareholder, moved the majority of its worldwide trademarks to a brand-new entity, a senior lender told The Post. The next day, the Montreal-based company — known globally for its flashy acrobatic and aerial acts — missed an interest payment on its $900 million senior debt, setting the stage for its bankruptcy, according to reports and sources.
What happened next is key: TPG and other Cirque shareholders — including Caisse de Depot et Placement du Quebec, Canada’s second-largest pension fund, and Shanghai-based Fosun International Ltd. — provided Cirque with $50 million in emergency financing.
Instead of issuing the loan to the company at large, they directed it to the new trademark unit, a move that instantly bolstered their status in bankruptcy, sources said.
As mere shareholders, TPG would have been forced to stand behind existing lenders in a bankruptcy. Likewise, if it had loaned the larger company millions, it would have been forced to take a backseat in a bankruptcy, experts said.
