When the wave of COVID-19 closures hit, the debut was postponed indefinitely, and while no new dates have been announced, company officials believe the show may premiere in the Fall, considering there are no health and safety restrictions on shows.
Under a Canadian Act, similar to Chapter 11 bankruptcy law in the US the company is filing under the Companies' Creditors Arrangement Act (CCAA) as the COVID-19 pandemic forced the famed circus to cancel shows and lay off its artistes.
Under the terms of the proposed Purchase Agreement, the sponsors will inject US$300 million of liquidity into the business' restructure to help a successful restart by providing relief for Cirque du Soleil's affected employees, partners, and current ticket holders.
Cirque du Soleil has filed for bankruptcy and they are laying off more than 3500 people. In March, the company laid off more than 3500 employees constituting about 95 per cent of its workforce after 44 productions were cancelled due to social distancing and lockdown orders.
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.
Cirque entered into a so-called stalking horse purchase agreement with its shareholders - TPG, Shanghai-based Fosun International Ltd. and Caisse de Depot et Placement du Quebec - for a USA $300 million injection of liquidity.
Cirque du Soleil's application for bankruptcy protection will be heard on Tuesday by the Superior Court of Quebec.
About 700 of them would be in Las Vegas, where the company earned about 40 per cent of its $1 billion in revenue a year ago and where it hopes to open a show as early as November, Chief Executive Officer Daniel Lamarre said in an interview.
According to CNN Cirque is almost $1 billion in debt. Cirque du Soleil also produces six shows in residence in Las Vegas, including the world-renowned "O" and "The Beatles LOVE", which were also shut down by the pandemic.