MONTREAL — After having signalled its intentions in recent weeks to support the struggling Cirque du Soleil, the Quebec government has come to the organization’s rescue by providing it with financial support of up to US $200 million.
The Quebec Minister of Economy and Innovation, Pierre Fitzgibbon, made the announcement on Tuesday afternoon.
Under an agreement in principle between Investissement Quebec (IQ), the financial arm of the Quebec government, and existing shareholders – the Texan investment fund TPG Capital, the Chinese firm Fosun and the Caisse de depot et placement du Quebec (CPDQ) – Quebec will be among the creditors of the entertainment company.
The government would also have the option of buying the Cirque in the event that current shareholders decide to pull out, Fitzgibbon suggested
In exchange for financial support, the company’s head office, currently located in the Montreal borough of Saint-Michel, must remain in Quebec and the members of its senior management must reside in the province.
With a debt estimated at more than US $ 900 million, the Cirque has been paralyzed by the COVID-19 pandemic, which forced the company to cancel its 44 shows in March and lay off almost all of its staff of about 4,700 people.
On Sunday night, Guy Laliberte, the founder and one-time owner of Cirque du Soleil, said he and a group of investors want to buy back into the circus company.
This report by The Canadian Press was first published May 26, 2020.
