Cirque du Soleil Files for Bankruptcy

The French-Canadian acrobatics and circus company Cirque du Soleil Enjoyment Team has filed for bankruptcy defense as section of a “comprehensive plan” to restart its enterprise.

The company cited the “immense disruption and pressured show closures as a consequence of the COVID-19 pandemic.”

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

The company briefly suspended production of its exhibits three months back, and is terminating approximately 3,480 staff members who have been furloughed in March.

“For the earlier 36 yrs, Cirque du Soleil has been a hugely successful and worthwhile corporation. Even so, with zero revenues considering that the pressured closure of all of our exhibits owing to COVID-19, administration had to act decisively to safeguard the company’s upcoming,” explained Daniel Lamarre, president and chief executive officer of the company.

Below the agreements, the company’s sponsors will insert $300 million in liquidity, with Investissement Québec agreeing to present $two hundred million in debt financing to help a proposed acquisition. The $300 million in liquidity also involves $15 million for a fund to aid terminated staff members and a $5 million contractor fund to pay back artisans and freelancers.

The company reportedly has $one billion in debt. Its restructuring system was becoming read Tuesday in the Top-quality Courtroom of Quebec. Cirque would look for immediate provisional recognition in the United States below Chapter 15 if that order was granted, the company explained.

Cirque explained its headquarters and ongoing functions in Quebec would carry on to be materials factors taken into account as section of its sale and expense solicitation process.

Paul Marotta/Getty Visuals

Cirque du Soleil, COVID-19, restructuring