Cirque du Soleil Files for Bankruptcy

The French-Canadian acrobatics and circus firm Cirque du Soleil Amusement Group has filed for individual bankruptcy defense as part of a “comprehensive plan” to restart its business enterprise.

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

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

The firm temporarily suspended manufacturing of its exhibits a few months ago, and is terminating around three,480 staff members who ended up furloughed in March.

“For the previous 36 yrs, Cirque du Soleil has been a hugely successful and worthwhile business. Nonetheless, with zero revenues because the pressured closure of all of our exhibits due to COVID-19, administration had to act decisively to guard the company’s long run,” explained Daniel Lamarre, president and main govt officer of the firm.

Underneath the agreements, the company’s sponsors will include $three hundred million in liquidity, with Investissement Québec agreeing to give $two hundred million in debt funding to assist a proposed acquisition. The $three hundred million in liquidity also consists of $15 million for a fund to aid terminated staff members and a $5 million contractor fund to pay artisans and freelancers.

The firm reportedly has $1 billion in debt. Its restructuring plan was becoming read Tuesday in the Top-quality Court docket of Quebec. Cirque would request immediate provisional recognition in the United States under Chapter 15 if that get was granted, the firm explained.

Cirque explained its headquarters and ongoing functions in Quebec would continue to be content issues taken into account as part of its sale and financial investment solicitation course of action.

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Cirque du Soleil, COVID-19, restructuring