Cirque du Soleil, the circus firm that was as soon as one in every of Quebec’s most profitable companies, filed for chapter safety on Monday.
However Quebec’s main institutional buyers have made a bid to safe the corporate’s future and preserve it primarily based in Montreal.
The corporate’s income move was devastated by the pandemic, which pressured it to halt dozens of productions around the globe.
In a information launch, the corporate stated Quebec Superior Court docket will hear its utility for chapter safety tomorrow. If granted, the corporate stated it is going to additionally search chapter safety in america.
“For the previous 36 years, Cirque du Soleil has been a extremely profitable and worthwhile group. Nonetheless, with zero revenues for the reason that pressured closure of all of our reveals as a result of COVID-19, administration needed to act decisively to guard the corporate’s future,” president and CEO Daniel Lamarre stated within the assertion.
As a part of the restructuring plan, the corporate has entered into an settlement that may see it offered to an present group of buyers that features Quebec’s pension fund supervisor, the Caisse de dépôt et placement du Québec.
The Quebec authorities’s funding wing (Investissement Québec) will present $200 million in debt financing to assist the acquisition.
Underneath the phrases of the deal, the group would take over Cirque’s liabilities and make investments $300 million US. The deal, often known as a stalking horse settlement, requires courtroom approval.
The settlement additionally consists of commitments to maintain the corporate’s headquarters in Montreal and supply $15 million US in help to three,500 workers who will probably be completely laid off.
Cirque stated it intends to rehire a “substantial majority” of the laid-off employees when enterprise situations enhance.
This can be a growing story and will probably be up to date.