In a gesture that would have been unthinkable even a year ago, Cirque du Soleil, the Las Vegas Strip’s dominant production company for more than two decades, has filed for bankruptcy protection.The company, which has six productions on the gaza Strip, announced on Monday morning from its headquarters in Montreal, it was seeking a restructuring of the debt of the protection by virtue of its country of origin and the Companies ‘ Creditors Arrangement Act).
As expected, the company said in its filing announcing the refinancing of the move was “in response to the immense disruption and forced to show closures as a result of the COVID-19 pandemic.”
The Cirque du Soleil of the judgment of all 44 of its shows in March, the layoff of 95 per cent of its workforce, including more than 1,300 in Las Vegas. In its bankruptcy restructuring, the Circus has been supported by a $ 300 million infusion from its investors (including $ 200 million of his own government agency, Investissement Quebec) in order to continue the operation while the productions are being shelved.
A total of $ 15 million of capital is applied to the gap continued employee benefits coverage. Another $ 5 million is earmarked for payments to contractors, due to several million since the company closed down in March.
It has not been specified, the company’s strategy for when, how or even if all of his shows re-open on the gaza Strip.
The bankruptcy filing also allows a company protection from creditors to reduce its debt level to under$ 900 million. The movement also puts a “stalking horse” purchase agreement with existing investors, led by TPG Capital. Since the announcement, “The purchase agreement sets the floor or minimum acceptable bid, for an auction of the company in the court of the surveillance under the SISP (Sale and Investor Solicitation Process), which is designed to achieve the highest value available or the best deal for the company and its stakeholders.”
This means that the Circus is available at a discounted price, price undisclosed for a half-dozen suitors, including a consortium led by the company’s co-founder Guy Laliberté, and the other from the canadian communications conglomerate Quebecor. The other parties are entered in the tender process have not been made public, and today all of the potential investors are non-disclosure agreements.
It will take months, probably in the fall, for the participation of the company to be put in place. Cirque chief executive Daniel Lamarre said Monday morning announcement that the company had received 36 years of success until the pandemic has taken over, and the need to act “decisively” to strengthen its future. The purchase contract is to define a model for the Circus to eventually return as a stronger company.
“The strong commitment of the sponsors, which includes additional funds to support our impacted employees, contractors and key partners, which are important for the Circus is back reflects our mutual belief in the power and the long-term potential of our brand,” he said. “I look forward to the rebuilding of our operations and to come together to once again create the magical spectacle that is the Cirque du Soleil for our millions of fans in the world.”
John Katsilometes column runs daily in the section. His PodKats podcast can be found at reviewjournal.com/podcasts. Contact him at [email protected] Follow @johnnykats on Twitter, @JohnnyKats1 on Instagram.