Montreal (AFP) – Cirque du Soleil announced on Monday it is filing for bankruptcy protection and cutting thousands of jobs as the world’s most famous circus troupe seeks to survive the coronavirus pandemic.
If granted, the Canadian company will then seek bankruptcy protection in the United States.
However, with zero revenues since the forced closure of all of our shows due to COVID-19, management had to act decisively to protect the Company’s future,” said Daniel Lamarre, chief executive of Cirque du Soleil Entertainment Group.
Secured creditors of Cirque du Soleil will receive $50 million in unsecured debt, plus a 45 percent equity stake in the restructured company and repayment of $50 million in loans.
The expectation is that the company will emerge from the US bankruptcy process with less debt and able to “meaningfully advance toward an eventual restart by launching the in-court process immediately,” Cirque du Soleil said.