Cirque du Soleil files for creditor protection
MONTREAL, June 30, (AP): Cirque du Soleil filed for creditor protection in Canada on Monday while it develops a plan to restart its business amid the pandemic.
The creator of many of the most popular shows in Las Vegas on Monday blamed the “immense disruption and forced show closures as a result of the COVID-19 pandemic.”
The Montreal-based circus arts show company temporarily suspended its productions around the world in March because of the new coronavirus outbreak.
Cirque du Soleil also announced the termination of approximately 3,480 employees previously furloughed in March.
In connection with the filing, Cirque du Soleil said it has entered into a purchase agreement with its existing shareholders TPG, Fosun and Caisse de depot et placement du Quebec as well as Investissement Quebec as a debt provider. Its said the sponsors’ bid includes an intent to rehire a substantial majority of the terminated employees, business conditions allowing, when its operations can resume.
The company added that given that its resident shows in Las Vegas and Orlando are expected to resume before the rest of the other shows, the artists and show staff of the resident shows division are not affected.
The Las Vegas shows that were cancelled included “O” at the Bellagio, “KA” at MGM Grand, “The Beatles LOVE” at the Mirage, “Mystere” at Treasure Island, “Zumanity” at New York-New York and “Michael Jackson ONE” at Mandalay Bay.
Cirque du Soleil shows in Austin, Texas, Chicago, Houston, New Orleans, Salt Lake City, Montreal, Boston, Tel Aviv, Meloneras, Spain, Munich, Costa Mesa, California, Denver, and the Australian cities of Melbourne, Adelaide and Perth were also cancelled.
Challenges
“While this bounceback in economic activity is welcome, it also presents new challenges, notably, the need to keep the virus in check,” Powell said.
Both Powell and Mnuchin were expected to face questions from lawmakers on topics including how much more support Congress will need to provide to bolster the economy.
That question has gained new urgency as the surge in cases in states including California, Texas and Florida have raised concerns about possible setbacks to efforts to rebound from the downturn that was brought on by measures to control the spread of the virus.
“The path forward for the economy is extraordinarily uncertain and will depend in large part on our success in containing the virus,” Powell says in the prepared remarks, stressing that a successful outcome will depend on policy actions taken by all levels of government.
The Trump administration has indicated it would be willing to back further economic support on top of the nearly $3 trillion in support already approved. But Democrats and Republicans are split on the size of any new rescue package and what elements it should contain.