Cirque du Soleil has filed for protection from creditors in Canada as its global circus shows remain shuttered during the coronavirus pandemic
Cirque du Soleil Entertainment Group has filed for protection from creditors in Canada as its global circus shows remain shuttered during the coronavirus pandemic.
Montreal-based Cirque du Soleil is seeking bankruptcy protection under the Companies’ Creditors Arrangement Act to restructure its balance sheet, the company said on Monday. The application will be heard by the Superior Court of Quebec on Tuesday. Cirque du Soleil also disclosed that it has entered into a court-supervised purchase agreement with its existing shareholders — including Texas-based TPG Capital, with a 55 percent stake and China's Fosun Capital Group, with another 25 percent stake — and Quebec debt holders to acquire the company's assets with a combination of cash, debt and equity.
Terms of the new purchase deal were not fully disclosed, but a $20 million fund will be created to support around 3500 employees who have been laid off. "For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization.
The proposed purchase agreement will also see $300 million of liquidity injected into the restructured business to allow a restart of the Cirque du Soleil global empire. In March, the creator of many of the most popular shows in Las Vegas temporarily laid off 4,679 employees, or 95 percent of its global workforce, after suspending 44 shows worldwide because of the coronavirus outbreak.
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