There is enough interest in Groupe Just for Laughs (JPR) to consider its sale in a single block rather than opting for a dismantling, according to the person responsible for the process. Five finalists covet the insolvent comedy giant.
Before the Superior Court of Quebec on Monday, controller Christian Bourque, of the firm PwC, offered an overview of the sale process of the company, which still benefits from the protection of the Companies’ Creditors Arrangement Act (LACC).
“We have serious buyers who are interested in the entire company,” he explained, before Judge David R. Collier. They were the ones selected as finalists for the second phase. »
A sale of JPR in different blocks, a scenario mentioned in documents sent to potential buyers by PwC last month, would have been more “complicated”, explained Mr. Bourque.
This scenario would have notably set the table for negotiations between the buyers to conclude agreements for the use of the licenses and brand of the humorous group, he added. The PwC representative, however, did not lift the veil on the identity of the potential buyers. In principle, these five finalists should not know who they are competing against. This does not mean that there will not be leaks, said Mr. Bourque.
“It’s a small environment, I think people know that,” said the controller. There may be a little gossip. We didn’t disclose it. The scope of serious buyers is not that huge. »
According to documents consulted by The Press, JPR could have split in two in the scenario of a sale in parts. Brands, festivals, tours and everything related to visual production – drawn largely from festival activities – would have been grouped into one block. The group’s different catalogs, in which we find the popular show The Gagswould have found themselves in the second block.
Apart
One thing is certain, for the moment, the three shareholders of the humor specialist – Bell (26%), Groupe CH (25%) and the American firm Creative Artist Agency (49%) – are not currently in the running. In 2018, they bought the company from the hands of founder and former president Gilbert Rozon, who was tarnished by accusations of sexual misconduct. He has since been acquitted of criminal charges.
No less than 15 potential buyers had signed confidentiality agreements since the beginning of March to have access to JPR’s books. Previously, PwC had contacted almost 130 potential buyers.
“The process involved a large number of letters of intent,” Mr. Bourque said before the magistrate.
Since mid-April, three individual meetings have taken place with each of the finalists, he revealed. The interviews served to comb through several elements: the company’s different niches, its finances as well as everything that revolves around the show. The Gags. This franchise is expected to generate annual revenues in excess of 4.5 million for several more years.
When it took shelter from its creditors on March 5, JPR had secured and unsecured debts of around 50 million. The National Bank was the main guaranteed lender (17 million) of the humor specialist.
Mr. Bourque was back in court to request an extension, until May 31, of the period during which JPR can continue to benefit from the protection of the CCAA. The controller wants more time to finalize the sale of the company. Judge Collier agreed to PwC’s request.
A few other topics were addressed by the controller in his testimony. Overview :
Money stolen: half recovered
JPR should be able to recover about half of the $814,000 it was stolen last year in a classic email fraud, according to the comptroller. A first recovery of $352,000 had already taken place last March. “There should be another achievement for a lesser amount,” said Mr. Bourque. This should end this chapter for a recovery of just under half (of the fraud). This means JPR will be leaving several hundred thousand dollars on the table.
Paid web giants
Even though JPR is safe from its creditors, the company continues to pay what it considers “essential suppliers”. These include social media platforms like Facebook and Instagram. The reason ? They allow the company to “monetize” its various contents, Mr. Bourque argued before the magistrate. In principle, JPR should have been granted the right to pay up to $250,000, which is $100,000 more than has been authorized to date in CCAA proceedings.
Still for sale
It was the brokerage firm Colliers that inherited the mandate to sell the JPR head office, located on Saint-Laurent Boulevard, in downtown Montreal. An offer was submitted, but it was not “interesting”, according to Mr. Bourque. The latter explained to the judge that he would like to sell the building to the buyer of the humor specialist. Otherwise, deadlines will drag on. On the Montreal assessment roll, the value of the property is close to 5 million.
Learn more
-
- 7
- JPR divisions: festivals, television production, show production, artist management, content distribution, digital production, corporate events.
just for Laughs
- 1983
- Presentation of the first Just for Laughs festival.
just for Laughs
reference: www.lapresse.ca