Cirque du Soleil files for creditor protection, terminates 3,480 employees

Cornelia Mascio
Giugno 30, 2020

"If the court grants the initial order sought, the company will seek its immediate provisional recognition in the United States under Chapter 15 of the U.S. Bankruptcy Code in the United States Bankruptcy Court", the statement reads.

The company was forced to shutdown all of its productions due to COVID-19, and it is not yet clear on what the future is of those shows, including the new show at Disney Springs - Drawn to Life.

Cirque du Soleil is filing for bankruptcy protection after months of closure at the hands of COVID-19.

Current Cirque CEO Daniel Lamarre said the company will return stronger, but any transition likely won't happen until the fall.

The company also entered a so-called stalking horse purchase agreement with its three stakeholders: TPG Capital, China-based Fosun, and the Canadian pension fund manager Caisse de dépôt et placement.

Cirque du Soleil has filed for bankruptcy and they are laying off more than 3500 people. They will also receive repayment of a $50 million interim loan.

The company added that given that its resident shows in Las Vegas and Orlando are expected to resume before the rest of the its shows, the artists and show staff of the resident shows division are not affected.

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 is drowning in almost $1 billion in debt, according to multiple reports. 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 application is scheduled to be heard by the Quebec Superior Court Tuesday and the company will also seek its immediate provisional recognition in the US under Chapter 15.

Among the Las Vegas shows impacted by the closing of the theaters were "Mystère" at Treasure Island, "O" at the Bellagio, "Zumanity" at New York New York, "KÀ" at the MGM Grand, "The Beatles LOVE" at The Mirage, "Michael Jackson ONE" at Mandalay Bay and "Blue Man Group".

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