The French-Canadian acrobatics and circus corporation Cirque du Soleil Entertainment Team has filed for personal bankruptcy safety as part of a “comprehensive plan” to restart its small business.
The corporation cited the “immense disruption and compelled display closures as a final result of the COVID-19 pandemic.”
Cirque du Soleil mentioned 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 furnishing personal debt.
The corporation quickly suspended creation of its displays a few months back, and is terminating close to three,480 workforce who were being furloughed in March.
“For the earlier 36 years, Cirque du Soleil has been a highly profitable and lucrative firm. Having said that, with zero revenues given that the compelled closure of all of our displays thanks to COVID-19, management experienced to act decisively to guard the company’s long term,” mentioned Daniel Lamarre, president and chief govt officer of the corporation.
Less than the agreements, the company’s sponsors will add $300 million in liquidity, with Investissement Québec agreeing to give $200 million in personal debt financing to guidance a proposed acquisition. The $300 million in liquidity also includes $fifteen million for a fund to help terminated workforce and a $five million contractor fund to spend artisans and freelancers.
The corporation reportedly has $one billion in personal debt. Its restructuring approach was remaining heard Tuesday in the Exceptional Courtroom of Quebec. Cirque would search for instant provisional recognition in the United States under Chapter fifteen if that purchase was granted, the corporation mentioned.
Cirque mentioned its headquarters and ongoing functions in Quebec would keep on to be substance concerns taken into account as part of its sale and financial investment solicitation procedure.
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