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Cirque du Soleil seeks protection from creditors to restructure business
The Cirque du Soleil Entertainment Group has announced that it is seeking protection from its creditors to restructure its capital structure. The announcement comes after it has been forced to cancel shows due to the coronavirus pandemic.
The company filed for protection from its creditors under the Companies’ Creditors Arrangement Act. In connection with this, the company also entered into a “stalking horse” purchase agreement with its shareholders.
Under this agreement, the shareholders will take over the company’s liabilities and invest US$300m into the business. One of these liabilities is the ticketholders who have been affected by the cancelled shows.
The shareholders will also establish a fund of $20m to provide relief to employees and independent contractors.