Cirque du Soleil Entertainment Group has been declared in suspension of payments in order to carry out a restructuring of your capital, after what the dismissal of its approximately 3,480 workers, which since last March were in job suspension as a consequence of the cancellation of shows due to the containment measures of the pandemic of Covid-19.
“As a necessary part of its restructuring and possible plans to restart operations, Cirque du Soleil announced the termination of the contracts of approximately 3,480 employees previously suspended in March after the interruption of income caused by the closings ordered by the Government in response to the Covid-19 pandemic, “confirmed the Canadian company.
In relation to the suspension of payments process, the main shareholders of Cirque du Soleil, the American TPG Capital, the Chinese Fosun Capital Group and the Canadian fund Caisse de Dépôt et placement du Québec, who acquired the company in 2015 for 1,500 million dollars (1,337 million euros), together with the Qubec authorities, have presented a restructuring plan that must be approved by the Superior Court of Quebec.
Under the terms of the agreement, investors will inject 300 million dollars (267 million euros) to the restructured business to support the resumption of its activities and to face certain pending responsibilities of the company, including those related to spectators with tickets affected by the cancellation of shows.
Specific, the Government of Quebec will contribute 200 million dollars (178 million euros), while the rest of investors will provide the remaining $ 100 million.
The proposed agreement includes, as part of the injection of 300 million dollars, the creation of a fund of 15 million dollars (13.4 million euros) aimed at providing financial assistance to the dismissed employees, as well as the establishment of another $ 5 million (€ 4.4 million) fund to meet the company’s outstanding obligations to independent artists.
“For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization. However, with zero income from the forced closure of all our shows due to Covid-19It took decisive action to protect the future of the company, “said Daniel Lamarre, president and CEO of Cirque du Soleil Entertainment Group.
In this sense, Lamarre expressed his confidence that the presented plan represents a way for Cirque to emerge as a stronger company.
The founder of the Circus of the Sun, Guy Laliberté, agreed in 2015 to sell the largest theater production company in the world for 1,500 million dollars (1,395 million euros) to an investment consortium led by private equity firm TPG Capital and China’s Fosun Capital Group.