The world-famous Circo del Sol has filed for bankruptcy at the same time that the company's main investors, with the support of the province of Quebec (Canada), submitted a restructuring plan .
Cirque du Soleil , one of Canada's most international institutions, said Monday in a statement that it has asked the provincial Superior Court for approval to restructure the company, which was already in financial difficulties before the appearance of the Covid coronavirus pandemic. -19.
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 dollars (89 million euros) while the Government of Quebec will inject another 200 million (178 million euros).
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%.
The company, which is headquartered in the city of Montreal, will also lay off some 3,840 people , and will establish two funds, worth $ 20 million (17 million euros) to compensate its staff and contractors.
The President and CEO of Circo del Sol , Daniel Lamarre , has stated that "for the past 36 years, Cirque du Soleil has been a very successful and profitable organization." However, "with no revenue since the forced closure" of all its shows due to Covid-19, management "has acted decisively to protect the future of the company."
Cirque du Soleil has also signaled that it "intends to rehire a substantial majority of the laid off employees when economic conditions allow, once the mandatory closings are canceled and operations can resume."
In March Cirque du Soleil , which was founded in Montreal in 1984 and which until the appearance of COVID-19 operated 44 shows worldwide , laid off some 4,680 people, 95% of its staff, due to the cancellation of their shows and faces suspension of payments.
The company has a debt of about 900 million dollars (800 million euros), as a result of the 2015 agreement valued at 1,500 million dollars (1,330 million euros) by which the American investment fund TPG took a majority stake of the company.
The founder of Circo del Sol, Guy Laliberté, sold his stake in the company in 2015 for about $ 1.5 billion. The bankruptcy process establishes that during the next 45 days other entities can present offers for Cirque du Soleil and it will be the Superior Court of Quebec who decides which offer is the winner.
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