Cirque du Soleil?s Cancelled Shows May Result in a Bankruptcy Filing
Cirque du Soleil explores debt restructuring options and has temporarily laid off a majority of its staff due to the worsening coronavirus
The post Cirque du Soleil’s Cancelled Shows May Result in a Bankruptcy Filing appeared first on LUXUO.
Affecting over 4,600 employees and about 95% of its overall workforce, Cirque du Soleil is exploring debt restructuring options, including a potential bankruptcy filing in light of the worsening coronavirus.
Cirque du Soleil’s Cancelled Shows May Result in a Bankruptcy Filing
Forced to cancel their regular Las Vegas shows, the revered Montreal-based circus company has temporarily laid off a majority of its staff due to the precautionary social distancing measures put in place by governments both world-and-state-wide.
Facing an estimated $900 million debt, Cirque du Soleil and its creditors have announced a dialogue addressing the increasing cash crush and future negotiations. With no defined plan to manage its strained finances, or official statement from the company ? a large part of Cirque du Soleil?s debts stem from a $1.5 billion deal with a private equity firm TPG taken up in 2015.
Currently regarded a ?high risk? company due to its overwhelmingly steep debt, Cirque du Soleil had about $105 million in funds available as of December, consisting of $20 million in cash and the rest from a revolving credit line, however with the virus-caused inactivity, the company is expected to spend at least $165 million on ticket rei...
The post Cirque du Soleil’s Cancelled Shows May Result in a Bankruptcy Filing appeared first on LUXUO.
Affecting over 4,600 employees and about 95% of its overall workforce, Cirque du Soleil is exploring debt restructuring options, including a potential bankruptcy filing in light of the worsening coronavirus.
Cirque du Soleil’s Cancelled Shows May Result in a Bankruptcy Filing
Forced to cancel their regular Las Vegas shows, the revered Montreal-based circus company has temporarily laid off a majority of its staff due to the precautionary social distancing measures put in place by governments both world-and-state-wide.
Facing an estimated $900 million debt, Cirque du Soleil and its creditors have announced a dialogue addressing the increasing cash crush and future negotiations. With no defined plan to manage its strained finances, or official statement from the company ? a large part of Cirque du Soleil?s debts stem from a $1.5 billion deal with a private equity firm TPG taken up in 2015.
Currently regarded a ?high risk? company due to its overwhelmingly steep debt, Cirque du Soleil had about $105 million in funds available as of December, consisting of $20 million in cash and the rest from a revolving credit line, however with the virus-caused inactivity, the company is expected to spend at least $165 million on ticket rei...
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