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Cirque du Soleil announced on Monday that the entertainment group would be going for bankruptcy protection due to the Covid-19 pandemic. Moreover, the capital structure of Cirque du Soleil is going to see a change. So, they would file the application for chapter 15 bankruptcy protection on Tuesday in the superior court of Quebec, U.S.
The entertainment establishment has very expensive and vivacious shows with a high amount of people as visitors. Plus, it is one of the finer destinations for Las Vegas strip visitors. Earlier, there were six shows of Cirque du Soleil running in different casinos of Las Vegas. However, with the Covid-19 pandemic, all the casinos and hotels are facing lockdown for over three months without any tourists. Presently, the scheduled shows include ‘Zumanity’, ‘Mystere’,’O’,’Michael Jackson ONE’, ‘The Beatles Love’, and ‘Ka’. The shows of Cirque were stopped from March 14 around Las Vegas and all over the world.
Cirque Du Soleil cancels all shows in light of the global pandemic
Important shows of the company have not yet started in Vegas maintaining the state authority’s regulations regarding handling public gatherings. According to an official statement, right from when the outbreak of the novel coronavirus took place, Cirque Du Soleil has been constantly thriving to keep up with all the strictest measures of safety. The organization has taken every possible step to keep the public and teams safe and healthy.
The representative said that the goal of Cirque du Soleil is strict. For them, the priority was and will be the safety and health of every entity and person associated with them. It includes partners, audiences, and employees. So, there is continuous monitoring of the situation, and they are yet to decide when the shows will resume. For the ones who had already booked tickets for the scheduled shows are supposed to get back a refund within a month.
Dissolution and documentation
Alongside the insolvency documenting, the organization has gone into a buy concurrence with its investors TPG, Caisse de dépôt et arrangement du Québec, Fosun, and Investissement Québec as a dept supplier. These patrons would procure the organization’s benefits. Per the understanding, the backers would infuse $300 million of liquidity into a rebuilt business to help a restart, offer alleviation to influenced representatives and accomplices, and pay for a portion of the organization’s outstanding liabilities, (for example, ticketholders requiring discounts). Investissement Québec will give $200 million paying off debtors financing.
Now with the novel coronavirus affecting every part of the world, it is affecting several organizations and industries. It is a tough phase for the world, and we all must overcome the situation together. Just like Cirque Du Soleil, and its plans for insolvency, other valuable organizations are under pressure to file bankruptcy. By what it seems right now is that the world is going to change quite a lot even after the difficult phase is over. Therefore, we can only hope and pray for a better post-COVID world.