Cirque Du Soleil Filed For Protection From Creditors To Avoid Bankruptcy
Canadian company Cirque du Soleil on Monday filed for protection from creditors to avoid bankruptcy, according to a message published on the company's website.
"Cirque du Soleil Entertainment Group announced today that it and some of its subsidiaries have filed for protection from creditors in order to restructure the capital structure," the statement said.
The explanation emphasizes that the company does not consider itself bankrupt, but takes this step to protect against bankruptcy. The appeal will be heard on Tuesday in the Superior court of Quebec. If it is accepted, Cirque du Soleil will seek immediate recognition in the United States under Chapter 15 of the American bankruptcy law.
According to the statement, the company has entered into an agreement with investors who will invest about $300 million in the restructuring and relaunch of Cirque du Soleil, as well as assume some of the company's debt obligations.
As Bloomberg points out, the company has been hit hard by the pandemic. In March, it was forced to stop working on 44 productions and cut about 95% of its employees (more than 4,500 people).
Cirque du Soleil was founded in 1984 by guy Lalibert and Gilles Saint-Croix based on a group of street performers who performed on the streets in the province of Quebec in Canada. Thanks to the bright shows that combine circus art with street performances and visual effects, "Cirque du Soleil" has become popular all over the world.