Cirque du Soleil lays off members of Blue Man Group

Cirque Du Soleil

The cuts of 3,480 employees come from the over 4,600 individuals who were furloughed back in March, with multiple reports saying that Cirque du Soleil is almost $1 billion in debt.

Investissement Québec will serve as its debt provider under the restructuring.

Montreal-based circus arts show company temporarily suspended its productions around the world in March because of the coronavirus outbreak.

The circus company said it will also file a companion bankruptcy in the seek protection from creditors in the U.S.

Cirque du Soleil is filing for creditor protection after months of being closed due to the COVID-19 pandemic.

"With zero revenue since the forced closure of all of our shows due to Covid-19, the management had to act decisively", said boss Daniel Lamarre.

TPG, Fosun, and Caisse have been investors in Cirque du Soleil since 2015, they said.

Under the terms of the proposed Purchase Agreement, the sponsors will inject US$300 million of liquidity into the business' restructure to help a successful restart by providing relief for Cirque du Soleil's affected employees, partners, and current ticket holders.

The application is scheduled to be heard by the Quebec Superior Court Tuesday and the company will also seek its immediate provisional recognition in the USA under Chapter 15.

Touring shows could come back in 2021 if the virus situation allows for it, he said.

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.

Cirque du Soleil's secured creditors will receive $50 million of unsecured, takeback debt as well as a 45% equity state in the company.

Cirque du Soleil shows in Austin, Texas, Chicago, Houston, New Orleans, Salt Lake City, Montreal, Boston, Tel Aviv, Meloneras, Spain, Munich, Costa Mesa, Denver, and the Australian cities of Melbourne, Adelaide and Perth have also cancelled.



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