Cirque du Soleil files for creditor protection amid COVID-19 woes

Cirque du Soleil files for creditor protection in Canada

Cirque du Soleil also announced the termination of approximately 3,480 employees previously furloughed in March.

Cirque du Soleil has filed for creditor protection as the company grapples with financial hardships during the ongoing novel coronavirus pandemic and looks to restart its business.

A group of existing investors, with backing from the Quebec government's investment wing, Investissement Québec, already has a deal in place to take over the company, inject $300 million USA and provide financial support for 3,500 laid-off workers.

Cirque's application for bankruptcy protection will be heard on Tuesday by the Superior Court of Quebec.

However, he said he regrets the end of the employment relationship of thousands of employees with the company, which has US$900 million in debt.

"If the court grants the initial order sought, the company will seek its immediate provisional recognition in the United States under Chapter 15 of the U.S. Bankruptcy Code in the United States Bankruptcy Court", the statement reads.

$15 million United States in financial help for laid-off workers.

"With zero revenue since the forced closure of all of our shows due to COVID-19, the management had to act decisively to protect the company's future", Chief Executive Officer Daniel Lamarre said.

A group of shareholders - which includes private equity firm TPG, Chinese conglomerate Fosun and Investissement Quebec - will initially acquire company assets in exchange for providing $300 million in liquidity as the restructuring venture seeks other investors.

It said it meant to rehire "a substantial majority" of terminated employees, business conditions allowing, once coronavirus-related shutdowns were lifted and operations could resume.

The company added that given that its resident shows in Las Vegas and Orlando are expected to resume before the rest of the its shows, the artists and show staff of the resident shows division are not affected.

$5 million USA to settle outstanding contracts (especially Quebec-based contractors).

The filing comes three months after it temporarily suspended production of its shows, including six in Las Vegas.



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