Cirque du Soleil Files for Bankruptcy
The French-Canadian acrobatics and circus business Cirque du Soleil Enjoyment Group has submitted for individual bankruptcy safety as component of a “comprehensive plan” to restart its small business.
The business cited the “immense disruption and compelled display closures as a end result of the COVID-19 pandemic.”
Cirque du Soleil explained it has entered into a stalking-horse settlement with its premier buyers, which include TPG, Fosun, and Caisse de dépôt et placement du Québec, for $420 million. Investissement Québec is providing personal debt.
The business temporarily suspended output of its displays a few months back, and is terminating somewhere around three,480 workers who were furloughed in March.
“For the past 36 decades, Cirque du Soleil has been a hugely prosperous and successful firm. However, with zero revenues due to the fact the compelled closure of all of our displays owing to COVID-19, administration had to act decisively to defend the company’s future,” explained Daniel Lamarre, president and chief government officer of the business.
Below the agreements, the company’s sponsors will include $300 million in liquidity, with Investissement Québec agreeing to offer $200 million in personal debt funding to assist a proposed acquisition. The $300 million in liquidity also features $15 million for a fund to guide terminated workers and a $5 million contractor fund to pay back artisans and freelancers.
The business reportedly has $1 billion in personal debt. Its restructuring program was getting heard Tuesday in the Excellent Court of Quebec. Cirque would request quick provisional recognition in the United States underneath Chapter 15 if that get was granted, the business explained.
Cirque explained its headquarters and continued functions in Quebec would go on to be product considerations taken into account as component of its sale and investment decision solicitation approach.
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