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Canada’s Cirque du Soleil receives court protection from creditors

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Canada's once high-flying Cirque du Soleil Entertainment Group on Tuesday received initial protection from its creditors in a Quebec court, after the COVID-19 pandemic forced the famed circus operator to cancel shows and lay off artists.

FILE PHOTO: Cast members of the show "Corteo" by Canada's Cirque Du Soleil perform during a dress rehearsal in Valencia June 15, 2011. REUTERS/Heino Kalis

01 Jul 2020 05:25AM

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MONTREAL: Canada's once high-flying Cirque du Soleil Entertainment Group on Tuesday received initial protection from its creditors in a Quebec court, after the COVID-19 pandemic forced the famed circus operator to cancel shows and lay off artists.

Montreal-based Cirque, which grew from a troupe of street-performers in the 1980s to a company with global reach, has been forced to slash about 95per cent of its workforce and suspend its shows due to the pandemic. The company filed for bankruptcy protection on Monday.

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Quebec Superior Court Judge Louis Gouin agreed to give the company protection from its creditors for 10 days. Cirque will seek its immediate provisional recognition in the United States under Chapter 15 in the United States Bankruptcy Court.

The company has signed an agreement with its existing investors private equity fund TPG Capital, China's Fosun International Ltd , and Canadian pension fund Caisse de depot et placement du Québec under which the consortium will take over Cirque's liabilities and invest US$300 million to support a restart.

The agreement will serve as the "stalking horse" bid in a sale and investment soliRead More – Source