Cirque du Soleil has filed for bankruptcy

The company had to stop all performances in March, including six popular Las Vegas shows and global touring musicals Michael Jackson One and The Beatles Love.

"For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization", said Daniel Lamarre, president of Cirque du Soleil Entertainment Group. The filing said that the move was "in response to huge disruption and forced show closures as a result of the COVID-19 pandemic". "I look forward to rebuilding our operations and coming together to once again create the magical spectacle that is Cirque du Soleil for our millions of fans worldwide".

Creditors of Cirque du Soleil Entertainment Group are set to turn down a proposal led by TPG that would leave them with a 45-per-cent stake in the company in exchange for wiping out most of its debt.

At the same time, Investissement Québec, the financial arm of the provincial government, will provide US$200 million in debt financing to support the proposed acquisition.

Under the bankruptcy filing, Cirque du Soliel has entered into a stalking horse purchase agreement with its stakeholders TPG, Fosun, and Caisse de depot et placement du Quebec.

However, the Cirque du Soleil has an agreement with the current investors, who will take over the management of the troupe and will invest $ 300 million in the restart of its activities. Some of its first lien lenders will also get a repayment of an interim loan of around $50 million.

The company will now try to restructure while shedding about 95% of its staff.

Cirque said the sponsors' bid includes an intent to rehire a substantial majority of the terminated employees, business conditions allowing, when its operations can resume.

Cirque du Soleil, the producer of a number of Las Vegas acrobatic shows, has filed for bankruptcy.

Cirque du Soleil shows in Austin, Texas, Chicago, Houston, New Orleans, Salt Lake City, Montreal, Boston, Tel Aviv, Meloneras, Spain, Munich, Costa Mesa, Denver, and the Australian cities of Melbourne, Adelaide and Perth have also cancelled.