Hit by the effects of the pandemic, the Cirque du Soleil will fire 3,840 employees and will establish funds for 20 million dollars (more than 16,327 million pesos) to compensate staff and contractors.
The famous circus, one of the world’s best-known entertainment companies, declared itself in bankruptcy this Monday due to the impact of the pandemic of coronavirus, while the main investors of the company presented a plan for restructuring their debts, which exceed 900 million dollars (more than 734,724 million pesos).
Cirque du Soleil, hit hard by the effects of the COVID-19, announced in a statement that it requested judicial protection against its creditors and that it has asked the provincial Superior Court for its approval to restructure the company, which was already in financial difficulties before the epidemic.
According to the company, the three investors of the circus, the American TPG Capital, the Chinese Fosun Capital Group and the financial institution Caisse de dépôt et placement du Québec, will contribute $ 100 million Americans while the Quebec Government will inject another 200 million.
Last March, the circus company founded in Montreal in 1984 and that until the appearance of the coronavirus operated 44 shows worldwide, dismissed some 4,680 people, 95% of its staff, due to the cancellation of their shows; It also faces suspension of payments.
The company has a debt of about 900 million dollars, the result of the 2015 agreement valued at 1,500 million dollars by which the American investment fund TPG took a majority stake in the company.
The investment fund TPG is 55% owned by the company, while Fosun controls 25% and the financial institution Caisse de Depot et Placement du Quebec, the remaining 20%.
Cirque du Soleil noted that it intends to “rehire a substantial majority of the terminated employees, when economic conditions allow, once the mandatory closings are canceled and operations can be restarted ”.
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