The Circo del Sol declares bankruptcy and dismisses 3,480 employees

Cirque du Soleil Entertainment Group has declared in suspension of payments in order to carry out a restructuring of its capital, after which it has announced the dismissal of its approximately 3,480 workers, that since last March they had been suspended for employment as a consequence of the cancellation of shows due to the containment measures of the Covid-19 pandemic.

“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 termination. of revenue caused by 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 principal accionistas of Cirque du Soleil, estadounidense TPG Capital, china Fosun Capital Group y el fondo canadiennese Caisse de Dépôt et placement du Québec, The companies that 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) into 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.

Specifically, the Government of Quebec will contribute 200 million dollars (178 million euros), while the rest of investors will provide the remaining 100 million dollars.

The proposed agreement includes, as part of the injection of $ 300 million, the creation of a fund of 15 million dollars (13.4 million euros) aimed at providing financial assistance to laid-off employeesas 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 the Covid-19, had to act decisively 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 plan presented represents a path for Cirque to emerge like a stronger company.

In 2015, the founder of Circo del Sol, Guy Laliberté, agreed to sell the world’s largest theater production company for $ 1.5 billion (€ 1,395 million) to an investment consortium led by private equity firm TPG Capital and the china Fosun Capital Group.