April 14, 2024

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Cirque du Soleil Files for Bankruptcy

The French-Canadian acrobatics and circus organization Cirque du Soleil Enjoyment Team has submitted for personal bankruptcy security as portion of a “comprehensive plan” to restart its business enterprise.

The organization cited the “immense disruption and pressured present closures as a end result of the COVID-19 pandemic.”

Cirque du Soleil mentioned it has entered into a stalking-horse settlement with its greatest investors, which includes TPG, Fosun, and Caisse de dépôt et placement du Québec, for $420 million. Investissement Québec is supplying debt.

The organization briefly suspended output of its reveals 3 months in the past, and is terminating approximately three,480 employees who have been furloughed in March.

“For the previous 36 decades, Cirque du Soleil has been a very thriving and profitable business. Nonetheless, with zero revenues due to the fact the pressured closure of all of our reveals due to COVID-19, management had to act decisively to guard the company’s potential,” mentioned Daniel Lamarre, president and main executive officer of the organization.

Underneath the agreements, the company’s sponsors will increase $300 million in liquidity, with Investissement Québec agreeing to supply $two hundred million in debt funding to assist a proposed acquisition. The $300 million in liquidity also consists of $15 million for a fund to guide terminated employees and a $five million contractor fund to shell out artisans and freelancers.

The organization reportedly has $one billion in debt. Its restructuring approach was currently being read Tuesday in the Exceptional Court of Quebec. Cirque would request fast provisional recognition in the United States less than Chapter 15 if that purchase was granted, the organization mentioned.

Cirque mentioned its headquarters and ongoing functions in Quebec would carry on to be content concerns taken into account as portion of its sale and financial commitment solicitation course of action.

Paul Marotta/Getty Photos

Cirque du Soleil, COVID-19, restructuring