Cirque du Soleil Declared Bankruptcy

Andrew Cummings
July 1, 2020

The firm had to pause production of all of its shows, including six in Las Vegas, back in March.

"For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization". When the wave of COVID-19 closures hit, the debut was postponed indefinitely, and while no new dates have been announced, company officials believe the show may premiere in the Fall, considering there are no health and safety restrictions on shows.

Cirque entered into a so-called stalking horse purchase agreement with its shareholders - TPG, Shanghai-based Fosun International Ltd. and Caisse de Depot et Placement du Quebec - for a USA $300 million injection of liquidity.

Impacted employees are meant to be rehired as Cirque du Soleil restarts its business, and mandatory COVID-19 shutdowns are lifted in impacted markets, the company said.

The workers with VStar, based in Fridley, as well as 3,340 others employed worldwide by Cirque, had been furloughed since March by the Montreal-based company. The investors will also set up two funds worth $20 million to offer additional relief to affected employees and independent contractors. Some of its first lien lenders will also get a repayment of an interim loan of around $50 million. However, this does not affect the artists and show staff of the resident shows in Las Vegas and Orlando, as they are expected to resume before the rest of the company's shows elsewhere.

The reorganization filing in Canada on Monday included Cirque agreeing to a purchase by its creditors: TPG, Fosun and Caisse de depot et placement du Quebec as well as Investissement Quebec as a debt provider, according to the Associated Press.

The firm said it plans to rehire "a substantial majority" of employees who are to lose their jobs, as it restructures and develops a plan to restart its business once coronavirus shutdowns are lifted and production is able to restart across the world.

Glimpses from Cirque du Soleil's Bazzar.

Other reports by iNewsToday