Cirque du Soleil has asked the provincial Superior Court for approval to restructure the company; will fire about 3 thousand 840 people
He Cirque du Soleil, one of the world’s best-known entertainment companies, filed for bankruptcy at the same time as the main investors of the company, with the support of the province of Quebec, presented a restructuring plan.
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Cirque du Soleil, one of the most international institutions in Canada and the province of Quebec, said this Monday in a statement that it has requested the Provincial Superior Court your approval for restructure the company, who was already in financial difficulties before the outbreak of the pandemic of COVID-19.
According to the company, the three investors of the circus, the American TPG Capital, the China Fosun Capital Group and the financial institution Caisse de dépôt et placement du Québec, will contribute 100 million US dollars while the Government of Quebec will inject another 200 million.
The investment fund TPG is 55 percent owned by the company, while Fosun controls 25 percent and the financial institution Caisse de Depot et Placement du Quebec, the remaining 20 percent.
The company, which is based in the city of Montreal, it will also fire about 3 thousand 840 people, and will establish two funds, worth $ 20 million to compensate its staff and contractors.
Cirque du Soleil President and CEO Daniel Lamarre stated that “for the past 36 years, Cirque du Soleil has been a very successful and profitable organization.” However, “no income since forced closure“Of all its shows due to COVID-19, the management” has acted decisively to protect the future of the company“
Cirque du Soleil. Photo of El Periódico
Cirque du Soleil also noted that it intends “to rehire a substantial majority of the dismissed employees, when economic conditions allow, once the mandatory closings are canceled and operations can restart.”
Last March, Cirque du Soleil, who was founded in Montreal in 1984 and that until the appearance of the coronavirus, it operated 44 shows around the world, dismissed some 4,680 people, 95 percent of its staff, due to the cancellation of its shows and faces suspension of payments.
The company has a debt of about $ 900 million, the result of the 2015 agreement valued at $ 1.5 billion by which the American investment fund TPG took a majority stake in the company.
The founder of Cirque du Soleil, Guy Laliberté, in 2015, sold its stake in the company for about 1.5 billion dollars.
The bankruptcy process establishes that during the next 45 days other entities can Submit offers for Cirque du Soleil and it will be the Superior Court of Quebec that decides the winner.
With information from .