For everyone who went to Vegas year after year and instead of attending one of Cirque du Soleil’s great shows, attending … less reputable “shows”, we have some bad news: you’re out of luck right nowbecause how Las Vegas Review Magazine reportsCirque du Soleil, the leading Las Vegas Strip manufacturing company for more than two decades, has filed for bankruptcy protection, in which existing interested parties entered into an agreement to acquire a company with a “pursuing horse”, setting a minimum price for the auction.
According to the report, the company, which had six operations in the Strip, announced Monday morning from its headquarters in Montreal that it was seeking protection against debt restructuring in accordance with its country’s Creditors Organization Act (CCAA). The company said in a statement filed for bankruptcy and refinancing “in response to colossal irregularities and forced closure of exhibitions as a result of the COVID-19 pandemic.”
In March, Cirque du Soleil closed all 44 of its shows and laid off 95% of its workforce, including more than 1,300 in Las Vegas in response to closed stops.
As we move forward, we know that you will have questions and we will continue to share information with you. If you already have tickets, they remain valid. For all other questions, refer to the frequently asked questions section on our website: https://t.co/MGJfZUk8Qr pic.twitter.com/spJ46YFs0T
– Cirque du Soleil (@Cirque) June 29, 2020
In the event of bankruptcy, Cirque will receive an infusion of $ 300 million from its investors (including $ 200 million from its own state-owned agency Investissement Québec). Existing investors, including TPG, Fosun and Caisse de dépôt et Place du Québec, will acquire the company’s assets to combine cash, debt and capital to continue operations while production is limited, and will also create two funds totaling $ 20 million. USA to provide added relief. for injured employees and independent contractors
Registration also allows the company to protect against creditors in order to reduce its debt burden, which is reportedly at least $ 900 million, which is quite shocking at what has long been considered the most popular and profitable show in the Strip.
The application also establishes an agreement to purchase a “haunting horse” with existing investors led by TPG Capital. From the announcement, “The purchase agreement sets the minimum or acceptable price for the company’s auction under the supervision of a court in accordance with the SISP (Sale and Attraction of Investors), which is designed to achieve the maximum available or other value. The best offer for the company and its interested parties.”
This means that Cirque is available at a lower undisclosed price for half a dozen buyers, including a consortium led by Guy Laliberte, co-founder of the company, and another of Quebec’s Canadian communications conglomerate. Other parties that entered the bidding process were not disclosed, and today all potential investors enter into non-disclosure agreements.
As a result of fluctuations in ownership, when debt is leveled and existing stakeholders are erased, it may take months to establish the ownership of the company in accordance with the Review Journal.
Cirque CEO Daniel Lamarr said in a morning statement on Monday that before the pandemic, the company had 36 years of success and had to act decisively to bolster its future. The purchase agreement should establish a template for Cirque to return as a stronger company.
“The firm commitment from sponsors, which includes additional funds to support our employees, contractors and responsible partners, which are important for the return of Cirque, reflects our common belief in the strength and long-term potential of our brand,” he said. he said. “I look forward to restructuring our activities and unification to re-create the magical spectacle of Cirque du Soleil for millions of our fans around the world.”
Alas, so far there has not been a specific strategy from the company when, how or even if all of its shows will be reopened on the Strip. Prior to bankruptcy, several permanent Cirque shows in Las Vegas were played by over 9,000 people per night, 5% of visitors to the city, adding to over 100 million people who have seen Cirque du Soleil products worldwide.