Reuters – Cirque du Soleil Entertainment Group said on Monday that it has applied for protection under the Corporate Creditors Agreement Act (CCAA) because the Covid-19 pandemic forced the famous circus to cancel shows and fire artists.
The Canadian entertainment company said it has entered into an agreement with its current shareholders, including TPG Capital , Fosun International Ltd and Caisse de depot et placement du Québec, under which the group will assume Cirque du Soleil’s liabilities and invest $300 million.
As part of the investment, the government body Investissement Québec will provide $200 million in debt financing.
“With zero revenue since the forced closure of all our shows due to Covid-19, management had to act decisively to protect the company’s future,” said CEO Daniel Lamarre.
The company laid off more than 4,000 people, or 95 percent of its workforce, in March and temporarily suspended its shows in Las Vegas, one of its most prominent areas.
The CCAA is a Canadian federal law that allows large corporations to restructure their finances and avoid bankruptcy, while allowing creditors to receive some form of payment for amounts owed.
Cirque du Soleil’s CCAA application will be heard Tuesday by the Superior Court of Quebec.
Photo: Facebook Crystal by Cirque du Soleil