Cirque du Soleil, known for its mesmerizing shows that fuse acrobatics with performance art, filed for bankruptcy Monday as the coronavirus continues to ravage the entertainment and theater industries.
MONTREAL Canada (Agencies) – Cirque du Soleil is seeking “Chapter 15” bankruptcy protection in the United States to facilitate a “stalking horse” purchase agreement negotiated with its existing shareholders to draw in more investment. The company seeks to create a $15 million employee fund to provide financial assistance for the almost 3,500 employees who have been laid off.
The filing comes three months after it temporarily suspended production of its shows, including six in Las Vegas. It also has about ten shows on tour across the world, including “O,” “Michael Jackson One,” and “The Beatles LOVE.“
Cirque du Soleil entered a “stalking horse” bid from its largest backers, including a mix of multinational private equity firms from the United States, China, and Canada for $420 million. The offer is intended to be a starting point in an auction to draw other bidders.
The company has also received $300 million in fresh funding to “support a successful restart, provide relief for Cirque du Soleil’s affected employees and partners, and assume certain of the company’s outstanding liabilities,” said the press release.
The company is drowning in nearly $1 billion in debt, according to multiple reports. That’s becoming increasingly untenable as its productions remain suspended. To help stem the financial loss, Cirque has laid off roughly 3,500 employees.
“For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization,” said Daniel Lamarre, CEO of Cirque du Soleil Entertainment Group. “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.”
more recommended stories
Merida Airport averages 8,300 daily passengers
Prior to the start of the.
More than 20 Mérida subdivisions are located in areas of high risk of flooding
Many of these subdivisions are very.
One dead after another hunting accident in Yucatan
On Sunday, June 26th, a 67-year-old.
Democrats who could run for president in 2024
Joe Biden’s universal name ID helped.
Three systems in the Atlantic forming around the Yucatan Peninsula
Forecasters are watching a disturbance in.
Kanasín police officers prevent a man from committing suicide on a Periférico bridge
A man climbed the bridge located.
Alvaro Leyva, a negotiator between the Marxist FARC rebels and the Colombian government announced as new cabinet member
Colombia’s leftist president-elect Gustavo Petro named.
Rudy Giuliani is assaulted by a grocery store employee In Staten Island
Controversial former New York City Mayor.
Yucatan’s Ie-Tram transport system will be the only one of its kind in all of Latin America
Mexico’s Yucatán governor Mauricio Vila has.
Gay Pride Parade: Hundreds of thousands march in Mexico City
Authorities were expecting as many as.