The financial situation at Cirque du Soleil was even worse than what we thought before the company is forced to cancel all its shows because of the pandemic, reveal documents filed in court this week.
These details and others were revealed this week while the Circus is protected from its creditors in the Superior Court.
The judge, Louis-Joseph Gouin has granted on Tuesday a protection of 10 days to the Circus to allow him to continue his activities.
Judge of the superior Court
The documents present a financial situation which was far from being in good shape even before the onset of the pandemic, which has forced the cancellation of all the shows across the world.
- The debt of the Circus amounted to $ 1.57 billion US $ (2,134 G of CA$) march 31, last. It is much more than the billion US $ of debt which had been brought up here in several reports.
- The Circus has lost in 2018 and 2019, respectively, US $ 71 million (96.4 million $) and US $ 80 million ($108.6 million).
- The situation was so problematic at the beginning of the crisis that Cirque du Soleil was fearful that creditors put a hand on its bank accounts. To reduce this risk, an amount of 48.6 million US $ was transferred on 24 march at Desjardins to the Bank HSBC (not linked to the lenders).
Loans from the Fund and Fund
On the 1.57 billion US $ debt, $ 885 million US today are due to the secured creditors (noyautés around the fund’s toronto-based Catalyst Capital). A total amount of 60 million US $ lent by 2019, non-guaranteed, is also due to the Caisse de dépôt et placement du Québec and solidarity Fund QFL.
The patron of the Fund, Gaétan Morin, has made no secret this week that he had no hope of seeing the color of this money. “We have written off substantially all of the unsecured loan “, he confided to The Press.
Bonuses to officers
Cirque du Soleil also admits in the documents that the unpaid employees of the Circus have little chance of being one day repaid. “It is difficult to conceive of a scenario in which all sums owed to these employees will be refunded in full,” reads one.
Cirque du Soleil is that certain information remains hidden to the general public in the process, including the salaries of its officers. This information should be kept strictly confidential and under seal, ” says the company in the documents of the court.
THE DESCENT TO THE UNDERWORLD OF THE CIRCUS
February 14, 2020
The Fund purchases 10 % of the Circus which still belonged to Guy Laliberté for at least$100 Million
10-14 march 2020
The Circus cancels all his shows in Europe and Las Vegas
19 march 2020
The Circus puts on foot 95 % of its workforce, or 4679 employees
May 26, 2020
Quebec grants$ 200 MILLION US for the relaunch of the Circus
June 8, 2020
The Circus receives six bids from potential buyers interested
June 29, 2020
The Circus goes away of its creditors