======================================================================= ______ _ __ _ __ / ____/___ ___________(_)___ ____ _/ /_(_)___ ____ / / / /_ / __ '/ ___/ ___/ / __ \/ __ '/ __/ / __ \/ __ \/ / / __/ / /_/ (__ ) /__ / / / / /_/ / /_/ / /_/ / / / /_/ /_/ \__,_/____/\___/_/_/ /_/\__,_/\__/_/\____/_/ /_(_) T h e U n o f f i c i a l C i r q u e d u S o l e i l N e w s l e t t e r ------------------------------------------------------------ http://www.CirqueFascination.com ------------------------------------------------------------ ======================================================================= VOLUME 20, NUMBER 7 July 2020 ISSUE #198 ======================================================================= Welcome to the latest edition of Fascination, the Unofficial Cirque du Soleil Newsletter. With Cirque du Soleil still shut down due to COVID-19, there's not much to highlight this month except for Cirque's bankruptcy protection fight and its ongoing problems with its creditors. You'll find a plethora of articles detailing the ins-and-outs of the fight within. And... that's about it! /----------------------------------------------------\ | | | Join us on the web at: | | < www.cirquefascination.com > | | | | Realy Simple Syndication (RSS) Feed (News Only): | | < http://www.cirquefascination.com/?feed=rss2 > | | | \----------------------------------------------------/ - Ricky "Richasi" Russo =========== CONTENTS =========== o) Cirque Buzz -- News, Rumours & Sightings * La Presse -- General News & Highlights * Q&A -- Quick Chats & Press Interviews o) Itinéraire -- Tour/Show Information * BigTop Shows -- Under the Grand Chapiteau * Arena Shows -- In Stadium-like venues * Resident Shows -- Performed en Le Théâtre o) Outreach -- Updates from Cirque's Social Widgets * Webseries -- Official Online Featurettes * Videos -- Official Peeks & Noted Fan Finds o) Copyright & Disclaimer ======================================================================= CIRQUE BUZZ -- NEWS, RUMOURS & SIGHTINGS ======================================================================= *************************************************************** LA PRESSE -- General News & Highlights *************************************************************** ---------------------------------------------------------- Cirque has lost its way, co-founder Ste-Croix says {Jun.17.2020} ---------------------------------------------------------- Tuesday was the 36th anniversary of the first Cirque du Soleil show, and a group of circus performers and artisans marked the birthday by erecting a blue-and-gold big top at the Old Port, not far from where the Cirque normally puts up its own, much larger big top. These Cirque artists were there to underline the notable day in the company's history, and to remind people that the troubled Montreal- based circus, which is in dire financial straits, owes them $1.5 million for work they have done over the past year. Also at the protest was Gilles Ste-Croix, who co-founded the Cirque with Guy Laliberté in the first half of the '80s. The two were part of a ragtag group of street performers in Baie-St-Paul that morphed into what would become the world's leading circus, and one of the planet's biggest live-entertainment companies. Ste-Croix says he backs the artists and feels strongly that the Cirque has lost its way in the five years since Laliberté sold the company for a reported US$1.5 billion to American and Chinese investors. "It's a sad thing, because I always say that the Cirque du Soleil is the energy of the creators and workers who ... bring it together," said Ste-Croix. "The Cirque du Soleil is not a big top — it's a show, and a show is human energy and human creativity. I think it's sad that they stopped paying them. And it was not a question of COVID — it was a question of bad finance. They ran out of money before COVID." Since it was bought by a consortium led by U.S. private equity firm TPG Capital in 2015, the Cirque has spent US$550 million to grow the company. Even before the pandemic forced the Cirque to close all its shows, there were warning clouds on the horizon. The Cirque had shuttered its latest Las Vegas show, R.U.N., a box-office bomb that cost the company US$60 million. It was also saddled with US$1 billion in debt. When the global box office went dry in March, the Cirque had to lay off just under 4,700 employees — 95 per cent of its staff. "Already last year we could see that there were some problems," said Ste-Croix. "They were putting out many, many shows, and a couple of them didn't work out. ... It was a question of how they were going about the development. Having so many shows out on the road ... demands lots of money to finance, hoping to make a buck out of it. But it didn't work out that way, and they were, I'd say, stretching to finance all this debt — and finally COVID came and it stopped all the revenue. So of course (the company) was in bad shape ... but already in January they stopped paying these people here. That's way before the middle of March," when COVID hit hard in North America. The problems started when the Cirque was sold in 2015, said Ste-Croix. "If you buy Cirque du Soleil at such a high price ... you want a return on your money," he said. "But the recipe to make money — and we did for 30 years — was create good shows and sell them! Develop markets. Of course that costs money. But you don't cut on creativity. That's what the Cirque du Soleil trademark is. The last few shows they put out, (there) was not so much money in the creativity." Laliberté recently announced he intends to make a bid to buy back the Cirque, and Ste-Croix said he supports his old pal's plan. The Quebec government has given the Cirque a US$200-million loan. Gabriel Dubé-Dupuis, who organized the protest Tuesday, said he would like Cirque executives to guarantee that any sales agreement will include a clause promising that the artisans will be paid. { SOURCE: Brendan Kelly, Montreal Gazette } ---------------------------------------------------------- Laliberté accepts Dragone's support — but not financially {Jun.23.2020} ---------------------------------------------------------- Two men who changed the trajectory of entertainment in Las Vegas, Guy Laliberté and Franco Dragone, still share a creative passion. They are forever linked by their history in Cirque du Soleil. But they are not connected financially. This is a critical reminder as Laliberté attempts to reclaim ownership of the financially beleaguered Cirque, while Dragone attempts to fend off tax-fraud charges in Belgium. Separately, both artistic visionaries have described Dragone's backing of Laliberté's ownership push as "moral support" as Dragone faces a legal battle likely to stretch through the year. Dragone has been under investigation for international tax fraud and money laundering charges for a period covering 2005-2012. Last week, the Belgian business publication Le Viv L'Express reported the country's prosecutor's office has brought charges against six people, including Dragone, in a case of tax fraud and money laundering. Reached over the weekend in Belgium, Dragone aggressively rebutted the reports, saying, "I deny in all respects the tax facts alleged against me by the prosecution. It is important to emphasize that the indictment is directed against me and a heritage company, to the exclusion of all the other companies of the Dragone group." The ING Bank Belgium, a leading international asset management institution, is also named in the complex fraud allegations. Dragone added, "I will reply point by point as soon as Belgian law allows me." The case is to be heard this fall. Those revelations, and Dragone's recent comments about supporting Laliberté's attempt to buy back Cirque, have led Laliberté to clear up Dragone's involvement in his empire: "Franco Dragone is not part of the Guy Laliberté consortium for the acquisition of Cirque," Laliberté spokeswoman Anne Dongois said in an email statement Saturday. Dangois compared Dragone's support of Laliberté to that of renowned Canadian playwright, director and actor Robert Lepage, who helped create "Ka" at MGM Grand and also the touring show "Totem." Lepage also hails from Laliberté's and Cirque's home province of Quebec. Along with fellow performer Gilles Ste-Croix, Laliberté grew Cirque from a troupe of street performers into an international production empire, and also the Strip's dominant production company. In 2015, Laliberté sold off his majority interest to investors led by TPG Capital. He shed his remaining stock in February, becoming a billionaire in the process. Now Laliberté wants to "save the Cirque," as he says, and is something of a fan favorite in the international artistic community to pull off the purchase. "Guy did indeed receive Dragone's support, like that of Robert Lepage and several other artisans, who contributed to the great success of the Circus," Dongois said, as "Circus" in this instance refers to Cirque. "Guy does not count on Franco to revive the Circus – Guy counts on himself. In short, the accusations made against Franco have no connection with Guy." The reports from Belgium specify that Dragone is accused of laundering millions in royalties, notably by using front companies in tax havens. These funds are said to have been collected by Dragone on shows he has directed for 25 years, including those in Las Vegas. Dragone conceived and directed "Mystere" and "O" when Laliberte ran Cirque, and later Celine Dion's "A New Day ..." at the Colosseum at Caesars Palace and "Le Reve" at Wynn Las Vegas. More recently, he created "The House of Dancing Water" in Macao's City of Dreams resort. The production reopened with COVID-19 protocols in April, but has again shut down for lax ticket sales and is set to return next January. In an interview this month, Dragone had voiced his support of Laliberté's attempt to regain control of Cirque. He reiterated Sunday that his investment was strictly as an artistic backer, saying, "I confirm that Guy has received my moral support and my promise of a possible artistic engagement. At no time was there any question of financial involvement on my part in the takeover consortium that Guy Laliberté worked to set up." This month, Dragone has resurfaced — digitally and philanthropically — in Las Vegas. He has established the "Las Vegas Creators United" YouTube conversation series, which supports The Composers Showcase of Las Vegas Entertainment Relief Fund. The series launched June 12, with Planet Hollywood headliner Criss Angel interviewing Dragone in a Zoom chat. TCS co-founder Keith Thompson is tracking the news out of Belgium. As he says, "Whatever Dragone's issues may be, they have nothing to do with The Composers Showcase and our non-profit or our efforts to help the Las Vegas Entertainment community." Laliberté himself was the first to disclose any connection between his Cirque strategy and Dragone. The Cirque co-founder told a national audience on Radio-Canada that Dragone had helped convince him to take a run at the circus company. In an appearance on May 25, Laliberté said, "Supporters I had from the Cirque community, Franco Dragone, Robert Lepage called me, ‘Guy, we will be there, with you, to help this new generation. You have to be there.' " But as we are reminded, it was just a pep talk. And you can take that to the bank. { SOURCE: Las Vegas Review Journal } ---------------------------------------------------------- Cirque du Soleil Files For Bankruptcy Protection {Jun.29.2020} ---------------------------------------------------------- In a move that would have been unheard of even a year ago, Cirque du Soleil, the Las Vegas Strip's preeminent production company for more than two decades, has filed for bankruptcy. The company, which has six productions on the Strip, announced Monday morning from its headquarters in Montreal it was seeking a debt restructuring protection under its home country's Companies' Creditors Arrangement Act (CCAA). As expected, the company said in its filing announcement the refinancing move was "in response to immense disruption and forced show closures as a result of the COVID-19 pandemic." Cirque du Soleil shut down all 44 of its shows in March, laying off 95 percent of its work force, including more than 1,300 in Las Vegas. In its bankruptcy restructuring, Cirque has been buoyed by a $300 million infusion from its investors (including $200 million from its own government agency, Investissement Québec) to continue operations while productions are sidelined. A total of $15 million of that capital is being applied to sidelined employees' ongoing benefits coverage. Another $5 million is earmarked for payments to contractors, owed several millions since the company shut down in March. There has been no specified strategy from the company for when, how or even if all of its shows will reopen on the Strip. The bankruptcy filing also allows the company protection from creditors to reduce its debt load, reported to be at least $900 million. The move also sets "stalking horse" purchase agreement with current investors, led by TPG Capital. From the announcement, "The purchase agreement sets the floor, or minimum acceptable bid, for an auction of the company under the court's supervision pursuant to the SISP (Sale and Investor Solicitation Process), which is designed to achieve the highest value available or otherwise best offer for the company and its stakeholders." That means Cirque is available at a reduced, undisclosed price for a half-dozen suitors, including a consortium led by company co-founder Guy Laliberte, and another from the Canadian communications conglomerate Quebecor. The other parties who have entered the bidding process have not been made public, and today all of the potential investors are under non-disclosure agreements. It will take months, likely into the fall, for the company's ownership to be established. Cirque CEO Daniel Lamarre said in Monday morning's announcement that the company had enjoyed 36 years of success until the pandemic took hold, and needed to act "decisively" to bolster its future. The purchase agreement is to set a template for Cirque to, eventually, return as a stronger company. "The robust commitment from the sponsors – which includes additional funds to support our impacted employees, contractors and critical partners, all of whom are important to Cirque's return – reflects our mutual belief in the power and long-term potential of our brand," he said. "I look forward to rebuilding our operations and coming together to once again create the magical spectacle that is Cirque du Soleil for our millions of fans worldwide." { SOURCE: John Katsilometes, Las Vegas Review-Journal } ---------------------------------------------------------- Cirque Announces Comprehensive Plan to Restart Business {Jun.29.2020} ---------------------------------------------------------- * Company files to restructure under the Companies' Creditors Arrangement Act in response to immense disruption and forced show closures as a result of the COVID-19 pandemic * Enters into a "stalking horse" purchase agreement with existing shareholders and Investissement Québec, setting the minimum acceptable bid in a court-supervised Sales and Investment Solicitation Process * Stalking horse bid includes key undertakings for Québec, affected employees and contractors; positions Company to emerge from CCAA as a stronger entity Cirque du Soleil Entertainment Group ("Cirque du Soleil," "Cirque," or the "Company") announced today that it and certain of its affiliated companies have filed for protection from creditors under the Companies' Creditors Arrangement Act ("CCAA") in order to restructure its capital structure. Its application under the CCAA will be heard tomorrow by the Superior Court of Québec (Commercial Division) (the "Court"). If the Court grants the initial order sought, the Company will seek its immediate provisional recognition in the United States under Chapter 15 of the US Bankruptcy Code in the United States Bankruptcy Court. In connection with the filing, Cirque du Soleil announced that it has entered into a "stalking horse" purchase agreement ("Purchase Agreement") with its existing shareholders TPG, Fosun, and Caisse de dépôt et placement du Québec (the "Sponsors") as well as Investissement Québec as a debt provider, pursuant to which the Sponsors would acquire substantially all of the Company's assets, for a combination of cash, debt, and equity, and would establish two funds totaling US$20 million to provide additional relief to impacted employees and independent contractors. Subject to the Court's approval, the Purchase Agreement will serve as the "stalking horse" bid in a sale and investment solicitation process ("SISP") supervised by the Court and the monitor, who will be appointed by the Court. The Purchase Agreement sets the floor, or minimum acceptable bid, for an auction of the Company under the Court's supervision pursuant to the SISP, which is designed to achieve the highest value available or otherwise best offer for the Company and its stakeholders. Under the terms of the proposed Purchase Agreement, the Sponsors will inject US$300 million of liquidity into the restructured business to support a successful restart, provide relief for Cirque du Soleil's affected employees and partners, and assume certain of the Company's outstanding liabilities, including with respect to ticketholders affected by the cancellation of the shows. As part of this US$300 million, Investissement Québec will provide US$200 million in debt financing to support the proposed acquisition. The Purchase Agreement provides Cirque du Soleil's existing secured creditors with US$50 million of unsecured, takeback debt in addition to a 45 percent equity stake in the restructured Company, and repayment of an interim loan made by certain first lien lenders in an amount of US$50 million. The proposed Purchase Agreement further provides, as part of the US$300 million of liquidity, for the creation of a dedicated US$15 million employee fund to provide financial assistance to terminated employees, and a dedicated US$5 million contractor fund to pay outstanding Company obligations to artisans and freelance artists. It also includes key undertakings for the Québec community in which Cirque du Soleil has deep roots, such as maintaining Montréal, Quebec, as the businesses' headquarters, with a view to keeping the core of this important cultural asset in Quebec. Cirque's Transaction Committee, which was put in place by the Board to carry out a fair and an independent process with the assistance of the Company's advisors, is encouraged by the high level of interest that Cirque du Soleil has generated from potential investors during this phase of the SISP. After evaluating the proposals received in the SISP's first phase, the Transaction Committee recommended, and the Board of Directors approved (with the representatives of the existing shareholders and Sponsors abstaining from voting), the Purchase Agreement as being in the best interest of all stakeholders, including its employees and creators. Among other things, the Purchase Agreement contemplates a lower level of post-restructuring debt relative to other bids, has no break fee associated with it and was the only bid to provide dedicated employee and contractor funds together with meaningful assumption of liabilities and significant commitments to Quebec operations. The Sponsors' bid was notably the sole fully documented and binding bid received, allowing the Company to meaningfully advance toward an eventual restart by launching the in- court process immediately. The Transaction Committee and the Board of Directors also believe that a transaction with the Sponsors will serve to ensure the Company's sustainability, as the Board of Directors seeks to deal seriously and thoughtfully with the high level of uncertainty facing the Company before it can re-launch its business operations at scale. "For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization. However, with zero revenues since the forced closure of all of our shows due to COVID-19, management had to act decisively to protect the Company's future," said Daniel Lamarre, President and CEO of Cirque du Soleil Entertainment Group. "The Purchase Agreement and SISP provide a path for Cirque to emerge from CCAA protection as a stronger Company. The robust commitment from the Sponsors – which includes additional funds to support our impacted employees, contractors and critical partners, all of whom are important to Cirque's return – reflects our mutual belief in the power and long-term potential of our brand. I look forward to rebuilding our operations and coming together to once again create the magical spectacle that is Cirque du Soleil for our millions of fans worldwide." As a necessary part of its restructuring and eventual plans to restart operations, Cirque du Soleil announced critical steps related to employees, including the termination of employment of approximately 3,480 employees previously furloughed in March following the halt in revenue caused by the government-mandated shutdowns in response to the COVID-19 pandemic. This termination allows employees to maximize and accelerate the financial compensation that they can obtain by immediately receiving payment on account of all accrued vacation time and gaining access to the Canadian federal Wage Earners Protection Program and other unemployment assistance programs. The Sponsors' bid and related restart plan includes a number of considerations for employees, including the creation of $15 million in assistance funds for those whose employment has been terminated and the intent to rehire a substantial majority of terminated employees, business conditions allowing, once and as mandatory shutdowns are lifted and operations can resume. Given resident shows in Las Vegas and Orlando are expected to resume before the rest of the Company's shows, the artists and show staff of the Resident Shows Division are not affected by this measure to allow for a swift and efficient return as soon as the ban on gatherings is lifted and show operations can resume. As part of its solicitation of proposals in its sale process, the Company asked that the potential bidders to specify their intentions with regard to Cirque's terminated employees, including financial compensation for these employees, the maintaining of the operations in Quebec, and a clear path to rebuilding operations, all of which have been and will continue to be material considerations of the Company taken into account as part of the SISP. Throughout this process, the Company has been represented by Stikeman Elliott LLP, Kirkland & Ellis LLP, National Bank Financial Inc. and Greenhill & Co. The Company will provide further updates throughout the restructuring process, as events warrant. If the Court grants the initial order sought, another hearing is expected to be scheduled in approximately ten days, during which the Court will be asked to approve the SISP and the Purchase Agreement. As part of its CCAA application, approval is sought for the appointment of Ernst & Young Inc. as the Court-appointed monitor to oversee the CCAA proceedings and report to the Court. { SOURCE: PRNewswire } ---------------------------------------------------------- Don't Blame the Virus for Cirque du Soleil's Trouble {Jun.30.2020} ---------------------------------------------------------- You might have heard that Cirque du Soleil filed bankruptcy yesterday. The financial collapse of the wildly popular entertainment company affects both the Walt Disney World and Universal Orlando resorts, as each hosts a Cirque production. Cirque's Drawn to Life was set to debut at Disney Springs before the pandemic shut down everything, and Universal CityWalk long has hosted a Blue Man Group show. (Cirque bought Blue Man in 2017.) As you might expect, the company blamed those shutdowns for its troubles. The first bullet point in Cirque's announcement of the filing said, "Company files to restructure under the Companies' Creditors Arrangement Act in response to immense disruption and forced show closures as a result of the COVID-19 pandemic." The filing should not have surprised anyone who's been watching the industry. Heck, we warned you about it back in March. But Cirque was in trouble since long before "coronavirus" entered everyone's vocabulary. Cirque's troubles began in 2015, when it was taken over in a leveraged buyout by a private equity firm. It's a story that's been repeated too many times around the world in recent years. The Atlantic told the Toys R Us version a couple of years ago, if you're looking for the details. Whatever the company involved, the main plot points are often the same. A private equity firms borrows a ton of money to buy a company. But instead of paying back the money itself – as you would if you bought a car or a home – the equity firm assigns the debt to the company it just bought. That's how Cirque ended up a billion dollars in debt despite running some of the most popular live theater productions in the world. Companies bought under these deals end up having to make huge debt payments, as well as often paying management fees to the private equity firm that bought them, forcing the company to cut operating costs in order to stay in business. The private equity firm might also saddle the company with more debt to buy additional businesses – as happened when Cirque bought Blue Man Productions. Or the private equity firm might sell off some of the company's assets to raise cash for itself – but never to cover the debt used to buy the company in the first place. So what's the end game? The private equity firm either sells the company to another buyer, spins off the company to the stock market... or sends the company to bankruptcy to discharge the debt. No matter what, it's all reward and no risk to the private equity partners. And if thousands of people lose their jobs in the process, well that's a sacrifice they are willing to make, as Lord Farquaad once said. The fact that this legal – and no one in Washington is talking seriously about changing that – illustrates just how the economy can be rigged in favor of Wall Street and against people and companies that do things that the public actually wants. Like, you know, the people who actually create Cirque and Blue Man shows — of which nearly 3,500 are now laid off due to this bankruptcy. { SOURCE: Theme Park Insider } ---------------------------------------------------------- Lenders Want CEO Lamarre out of Cirque du Soleil {Jul.01.2020} ---------------------------------------------------------- Cirque du Soleil's longtime Chief Executive Daniel Lamarre may soon prefer to be on the high wire than in the C-suite. A group of lenders angry over Cirque du Soleil's bankruptcy plans are mulling a plan to remove Lamarre, who has been Cirque's CEO since 2001, The Post has learned. The lenders — who hold some $1.1 billion in debt that Cirque can no longer afford — say they were blindsided by Cirque's plan to sell itself right back to its current owners, including majority owner TPG Capital. The controversial plan seeks to give the lenders — a group that includes Los Angeles Dodgers co-owner Todd Boehly — a minority stake in the global brand in exchange for wiping out their debt. The lenders have asked the Quebec superior court judge overseeing the process to squash Cirque's plan to give TPG and the other investors a 55-percent stake in the company in exchange for a $400 million lifeline. If the judge refuses this request, they plan to ask him to replace Lamarre as CEO and as a board member along with the rest of the board, sources tell The Post. They would seek to replace Lamarre and the board with an independent restructuring officer, these sources said. The lenders plan to argue that Cirque's current leadership unfairly favors the investors, a group that also includes Chinese conglomerate Fosun and Quebec's public pension manager Caisse de dépôt et placement du Québec. This view was highlighted Tuesday in an 11-page court document that blasted Cirque's restructuring plan for having "afforded special treatment to its shareholders." "The company's decision to [again] favor the interests of its shareholders to the detriment of the secured lenders gives rise to significant concerns about the company's governance," the creditors complained in the court filing. TPG and Cirque spokespeople declined to comment. Lamarre took the helm of the trailblazing, acrobatic circus act in 2001, when it was already an international sensation. He was hired by Cirque's colorful co- founder Guy Laliberte, who sold his remaining stake to Caisse in February. The two men met back in 1986 when Lamarre, a Quebec native, was working in public relations, according to an interview he gave Ontario lifestyle magazine Fifty-Five Plus. Lamarre agreed to represent Cirque — only to waive his fee because the roving band of street performers couldn't afford to pay. "At the time, [Laliberte] couldn't pay my bills because Cirque was struggling financially," he told the magazine. { SOURCE: New York Post } ---------------------------------------------------------- In addition to debt, Cirque's net loss increased too {Jul.02.2020} ---------------------------------------------------------- Cirque du Soleil was in a vulnerable position before the COVID-19 pandemic paralyzed its activities, according to a report. Carried out by Ernst & Young – the firm overseeing Cirque du Soleil's restructure under creditor protection – the report shows the company's net loss gradually increased from USD $10 million to USD $80 million from 2017 to 2019. The circus also went into significant debt during its attempt to accelerate its growth, but several acquisitions helped increase revenues from USD $882 million to USD $1.04 billion during that period. On Monday, Cirque du Soleil CEO Daniel Lamarre said the company's profits totalled about USD $155 million last year, but that amount doesn't factor in interest, taxes or depreciation. As of March 31, the company's various debts totalled nearly USD $1.6 billion, according to a document filed with the Superior Court of Quebec. As part of the restructuring, the company's current shareholders – the Texan fund TPG Capital, the Chinese firm Fosun and the Caisse de depot et placement du Quebec – signed a purchase agreement of USD $300 million in which the loan of USD $200 million by Investissement Québec will be used. These are the minimum conditions to be met if other players want to submit a proposal to acquire the entertainment company. { SOURCE: CTV News } ---------------------------------------------------------- Rival bid Involved NO Layoffs or Public Handouts {Jul.03.2020} ---------------------------------------------------------- A group representing the majority of creditors owed money by the Cirque du Soleil presented a formal offer to acquire the Cirque two weeks ago and it was a deal that included no layoffs and no government handouts. It would have also ensured that control of the Montreal- based circus remain in Quebec. The group thought the current management, led by CEO Daniel Lamarre and the board of directors, was taking the offer seriously. But instead, Lamarre and the Cirque board of directors blindsided the creditors group, filing for bankruptcy protection in Quebec Superior Court on Monday and proposing a plan that would protect the stake of the three current owners: American private equity fund TPG Capital, Chinese company Fosun and the Caisse de dépot et du placement du Québec. Lamarre's deal includes permanently firing 3,480 employees and using US$200 million from the Quebec government from a loan already promised by Economy Minister Pierre Fitzgibbon. "Ours is a constructive proposal focused on preserving all employees, providing more money than was presented Monday ... and (we will be) achieving this while preserving the company in Quebec without having to use any taxpayers' money," said Gabriel de Alba, managing director at the Toronto-based private equity firm Catalyst Capital Group. Catalyst is the largest lender to the Cirque and it has been buying up much of the Cirque debt in recent months. Lamarre's plan to seek bankruptcy protection and then relaunch the Cirque will not succeed without support of the majority of creditors. Neither Lamarre nor any other Cirque executives were available for comment Thursday. In its bankruptcy filing Monday and in his public comments in recent weeks, Lamarre has blamed all of the Cirque's financial woes on the COVID-19 pandemic. All of the Cirque's shows around the world were cancelled because of the pandemic, but court documents underline that there have been big financial issues for years. Net losses at the company increased from US$10 million to US$80 million between 2017 and 2019. Sources close to the creditors group said the losses began piling up shortly after Cirque founder Guy Laliberté sold the circus to the consortium led by TPG in 2015 for a reported US$1.5 billion. The debt increased from around US$300 million to US$1.2 billion over those five years. "The leverage on the organization was immense, but the profitability went nowhere," a source said. "They were already in trouble (before COVID). They were already starting to stretch out their accounts payable as early as last August. They were deciding not to pay people." The provincial government is exclusively backing the plan that involves firing nearly 4,000 employees rather than supporting a bid that does not include any layoffs. "What we have to ensure is we don't do another Bombardier," said Québec Solidaire MNA Vincent Marissal, referring to the government bailout of the troubled aerospace company that has cost taxpayers billions of dollars. "The reason we lost so much money with Bombardier was because of the management structure," Marissal added. For Marissal, the time has come to change the upper management at the Cirque du Soleil, given their track record over the past five years. "If we're putting in $275 million of our taxpayers' money, I think we should have a bit of pull," he said. "TPG does this systematically. They buy companies, often at too high a price. They're a bit of a cowboy company. And I don't think we should just give them a cheque and cross our fingers that everything will turn out right ... these guys are mercenaries of high finance. They buy things left and right, they have no particular expertise. ... They don't have any attachment to the Cirque. The results are bad for the past few years. It's like Cirque co-founder Gilles Ste-Croix said — they create shows that don't work because they don't understand the DNA of the Cirque du Soleil." There are reportedly six bids to acquire the Cirque, with both Laliberté and Québecor CEO Pierre Karl Péladeau interested in buying the company. Fitzgibbon has been tight-lipped on the details of the US$200-million loan to the TPG consortium, but has said that if TPG were to sell the Cirque at a later date the Quebec government would have the first right of refusal. The next court date is July 10 and the only thing clear right now is that the Lamarre/TPG plan cannot move forward legally without the support of the majority of the lenders. { SOURCE: Brendan Kelly, Montreal Gazette } ---------------------------------------------------------- Cirque Lenders Fighting Company's Restart Plan {Jul.09.2020} ---------------------------------------------------------- Cirque's creditors are upset, to put it mildly, at the company's restructuring plan announced June 29 by company CEO Daniel Lamarre. The lenders who hold most of Cirque's nearly $1 billion million debt are not accepting a bid by the company to seek bankruptcy protection. Under Cirque's restructuring proposal, TPG Capital, China-based Fosun Capital Group and the Caisse de dépôt et placement du Québec have offered to purchase and restart the company for $400 million. They would thus have a 55-percent stake in the company. In this plan, lenders would be paid pennies on the dollar for what they are owed. This is a serious concern for the creditors, who refuse to agree to the TPG-led proposal. That group includes Toronto's Catalyst Capital, several U.S. investment firms, including Los Angeles Dodgers co-owner Todd Boehly's Eldridge Industries, which also owns Dick Clark Productions, The Hollywood Reporter and film distributor A24. Several weeks ago, according to the Montreal Gazette, those lenders made their own offer to salvage Cirque. That effort reportedly would have saved the nearly 3,500 employees who were permanently laid off under the current restructuring proposal. The group claims it was "blindsided" when Cirque announced its restart proposal on June 29. The lenders have since asked the Quebec superior court judge reviewing the process to dismiss Cirque's plan, which would give TPG's group controlling interest in the company. The plan announced by Lamarre and TPG can't legally advance without the support of the majority of the lenders. The next court date is scheduled for Friday. According to reporting in the New York Post, if the lenders' effort is turned back, the group would ask to replace Lamarre as Cirque's CEO and as a board member, along with the rest of the board. They would ask to replace the entire Cirque Board of Directors with an independent restructuring officer. { SOURCE: Las Vegas Review-Journal } ---------------------------------------------------------- Cirque creditors preparing offer for insolvent company {Jul.10.2020} ---------------------------------------------------------- The Cirque du Soleil's creditors are finalizing an agreement that could replace the one put forward by the insolvent entertainment company's shareholders. The turn of events was disclosed Friday at the Quebec Superior Court. Shareholders including the Texan fund TPG Capital, the Chinese firm Fosun and the Caisse de depot have presented a so-called stalking horse bid valued at about US$420 million. The lenders have signalled that they intend to oppose the shareholder agreement, calling it "doomed to fail." A representative of monitor Ernst & Young told the court that it believes a negotiated agreement was the "optimal scenario for both parties." The creditors, who hold about US$1 billion in secured debt, have until Tuesday to submit their proposal to advisers of the company, which has been deprived of income since its 44 shows were cancelled mid-March because of COVID-19 and prompted the layoff of some 3,480 employees. Details of the creditors' proposal have not been released, but according to what has already been disclosed, the offer would maintain Cirque's head office in Montreal and would not seek financial support from the Quebec government. The lenders have already proposed a conversion of the guaranteed debt into shares. { SOURCE: Yahoo! Finance } ---------------------------------------------------------- Cirque Owes Robert Lepage and Several Others {Jul.13.2020} ---------------------------------------------------------- Cirque du Soleil, which took shelter from its creditors last month, owes dozens of Quebec suppliers millions of dollars. In particular, Cirque owes $ 210,000 to a company belonging to the theater man Robert Lepage and more than $ 150,000 to costume designer Jean-François Rochefort. Other major Cirque creditors in Quebec include audiovisual specialist Solotech (over a million dollars), Darcom Innovations ($ 427,000), Scène Éthique ($ 244,000), Unisson Structures (123,000 $), the advertising agency Sid Lee ($ 196,000) and Quebecor ($ 69,000). Freelancers and other Cirque subcontractors have accumulated over $ 3.1 million in overdue payments. As a reminder, Cirque and its various subsidiaries owe a total of some $ 2 billion to their lenders and creditors. The Fonds de solidarité FTQ and the Caisse de depot et placement du Quebec lent $ 40 million each to Cirque. The company’s guaranteed debt, held by various funds outside Quebec, exceeds $ 1.3 billion. The circus also owes $ 1.07 million to the City of Montreal, $ 1.7 million to Sun Life, more than $ 800,000 to Bell Canada and $ 11.7 million to the American marketing agency PMG Worldwide. { SOURCE: TVA Nouvelles } ---------------------------------------------------------- Nakotah LaRance dies at 30 {Jul.14.2020} ---------------------------------------------------------- Champion hoop dancer Nakotah LaRance, who traveled the world performing with Cirque du Soleil then returned to New Mexico to coach youth dancers, has died at age 30. LaRance, who was Tewa, Hopi, Navajo and Assiniboine, died Sunday after he accidentally fell from a bridge in New Mexico’s Rio Arriba County, said his father, Steve LaRance. Nakotah LaRance started dancing when he was 5, Indian Country Today reported. His father took him to a powwow where he met champion hoop dancer Derrick Davis, who made him his first set of hoops and started teaching him how to dance. Native hoop dancing involves doing intricate footwork while twirling and throwing hoops in the air and manipulating them into shapes such as wings, tails, an open alligator mouth or a sphere. “The hoop dance is a healing ceremony,” Steve LaRance said. “Just a super energy that comes out of performing gives people a whole other feeling about them, what they saw and even about themselves.” One of Nakotah LaRance’s moves was to create a sphere with several hoops and toss it into the air, then step into the hoops as they came down and turn them into wings. “Nakotah was known for delivering fearless and thrilling performances,” said Dan Hagerty, director of strategic development and planning at the Heard Museum in Phoenix. “His risk-taking in the hoop arena resulted in unforgettable performances, and he will forever remain a fan favorite.” LaRance began competing in the Heard’s annual World Championship Hoop Dance Contest as a youth. He won championship titles in each category, and won the adult division – earning the title of World Champion – three times, in 2015, 2016 and 2018. LaRance also performed on NBC’s “Tonight Show” with Jay Leno, which led to some acting roles, including a part in Steven Spielberg’s 2005 television series “Into the West.” In 2009, at the age of 20, Nakotah became a principal dancer with Cirque du Soleil and traveled the world performing in its shows for more than three years. “He really was a top performer,” said George Rivera, family friend and co-founder of a youth dance group. “Most human beings, even if they’re dancers, would never be able to pull off what he could pull off with his style. And the fact that he was trained to Cirque du Soleil just gave him a whole ’nother dimension of gymnastics and athletic ability as well.” LaRance later returned to northern New Mexico, where he created a youth group, the Pueblo of Pojoaque Youth Hoop Dancers. He was also a master instructor at the Lightning Boy Foundation Youth Hoop Dancers. “His biggest love was giving back to the Native American youth as a teacher, a mentor for Native American hoop dancing,” Steve LaRance said. Jojo Vigil, 15, started learning from Nakotah LaRance seven years ago. He said his coach helped boost his confidence. “He was someone I could talk to who could help me with a lot of stuff,” Vigil said. “He was just an overall, just great guy.” The family plans to hold a memorial once the pandemic is over. { SOURCE: USA Today } ---------------------------------------------------------- Cirque Accepts Lenders’ Bid, Sidelining TPG {Jul.15.2020} ---------------------------------------------------------- Cirque du Soleil Entertainment Group, which is restructuring under court protection in Canada, accepted a recapitalization offer from a group of lenders, people with knowledge of the matter said. The ad hoc committee of creditors, which represents holders of about $760 million in Cirque debt, formally presented a “credit bid” that would see lenders inject at least $300 million of new capital into the live-performance company to eventually restart its shows. The offer, previously reported by Bloomberg, was accepted by a committee of Cirque’s board Tuesday night, the people said, asking not to be identified because the information is private. The proposal would see first-lien creditors, who were owed more than $900 million as of March 31, wind up with virtually all of the equity. The offer will replace a stalking-horse bid made by TPG and other Cirque shareholders in June. But there’s still a chance existing shareholders could wind up with an equity stake. Cirque has agreed to allow other interested parties to begin negotiating with the creditors’ group about alternative deals, according to people with knowledge of the matter. TPG has made overtures about engaging with the creditors, the people said. COURT HEARING Credit bidding involves canceling outstanding debt as part of an offer to acquire a debtor’s assets. The creditors’ offer is expected to head for a court hearing on July 17. Other potential bidders have until Aug. 10 to present competing proposals, and an auction should happen no later than Aug. 17. A transaction should be concluded by Sept. 14. A Cirque spokesperson declined to comment, citing a non-disclosure agreement and confidentiality of the recapitalization process. A TPG spokesman and a representative for the creditors’ committee declined to comment. On June 8, the creditors’ group offered to inject $300 million — an amount that could rise to $375 million — into Cirque under a restructuring plan that would convert the company’s debt into a 100% ownership stake, according to a letter seen by Bloomberg. The new offer maintains the major points of that letter and proposes keeping Cirque’s head office in Montreal and establishing a fund for its employees. The company filed for protection last month after the coronavirus pandemic forced it to close shows around the world, triggering a fight for control of one of the best-known brands in live performance. Cirque had entered into a stalking-horse agreement with its shareholders — TPG, China’s Fosun International Ltd. and Caisse de Depot et Placement du Quebec. Creditors immediately rejected that offer, which would have left them with a 45% equity stake. As of March 31, Cirque owed its first-lien creditors $901 million and its second-lien creditors $154 million. It also owed $32 million to the Caisse and an equal amount to Fonds de solidarite des travailleurs du Quebec. Cirque had $1.47 billion in liabilities at the end of 2019, about five times shareholders’ equity. { SOURCE: Bloomberg } *************************************************************** Q&A -- Quick Chats & Press Interviews *************************************************************** ---------------------------------------------------------- "Wigan twins who entertain crowds with fantastic aerial shows look forward to getting back to work" {Jul.06.2020} ---------------------------------------------------------- Kevin and Andrew Atherton wow the crowds with their awe-inspiring shows, performing spectacular feats for global audiences. They previously represented Great Britain as gymnasts, including competing in the Commonwealth Games, before joining Cirque du Soleil 20 years ago. The world-famous circus announced this week it will make 95 per cent of its performers redundant in a bid to avoid bankruptcy, after being badly affected by the cancellation of its productions during the coronavirus pandemic. While they have not had a contract with Cirque du Soleil since 2018, the twins have been performing in shows created by the organisation and heard about the shake-up from friends still employed there. Kevin, who grew up on Barnsley Street in Gidlow, said: "It's sad. I don't know the ins and outs of what's happening, but I guess the coronavirus has really knocked them off their feet, as it has done for many people. We have got so many friends affected by this, because their employment was suspended when decisions were made not to allow big crowds and gatherings, but obviously that's become permanent for a lot of people." While the pandemic has put shows on hold, Andrew and Kevin are looking forward to getting back to work next month. They will be continuing with a show called Paramour, which was created by Cirque du Soleil but produced by Stage Entertainment, in Hamburg, Germany. Their aerial gymnastics display in the show was voted the second best Broadway moment of 2016 and they have been performing it in Germany since the beginning of last year. It is hoped that training can resume in August, ready for the show to open in September. Kevin said: "We have been doing that show for a long time and absolutely love it, because we get to sing and dance as well as perform our acrobatic act." The production runs until September 13, after which they plan to spend time at their homes in Las Vegas before moving to Mexico for at least a year for a show called Joya, which begins in November. That was also created by Cirque du Soleil but produced by Vidanta Rivera Maya, and will be a dinner show in a resort. The twins love travelling the world to perform in amazing shows and are joined by Andrew's wife, his two children and Kevin's two-year-old son. Kevin said: "We started over 20 years and we have never stopped. We have just turned 45 and to be still doing what we are doing at that age is pretty special. We are lucky to be able to do that. "A lot of people think children would stop us doing something like that, but we bring the children so they experience everything we do." The pair no longer have family in Wigan - their parents moved to Spain and their sister lives in Wakefield - but would like to show their children their home town one day. And despite being so far from home, they still remember where it all started. Kevin said: "We are both proud of our roots. We were at The Deanery High School and without the support from the council and The Deanery, we wouldn't be able to do what we do. They used to let us take time off school to focus on our training. We definitely were born in the right town." { SOURCE: Wigan Today } NOTE: Since this interview was published, word on the street is that performances of PARAMOUR will not be able to resume on September 1st as planned. With the show only selling tickets up through the 13th, it's likely PARAMOUR has put on its last performance. As for the Athertons, they recently announced that starting November 2020, they'll be joining the cast and crew of Cirque du Soleil JOYÀ. JOYÀ reopened on July 3rd. ======================================================================= ITINÉRAIRE -- TOUR/SHOW INFORMATION ======================================================================= o) BIGTOP - Under the Grand Chapiteau {Alegria, Bazzar, Koozå, Kurios, Luzia, Totem, Under the Same Sky, and Volta} o) ARENA - In Stadium-like venues {OVO, Crystal, Corteo, AXEL, Messi10} o) RESIDENT - Performed en Le Théâtre {Mystère, "O", Zumanity, KÀ, LOVE, MJ ONE, JOYA, Paramour X: The Land of Fantasy, Drawn to Life, and NYSA } NOTE: .) While we make every effort to provide complete and accurate touring dates and locations available, the information in this section is subject to change without notice. As such, the Fascination! Newsletter does not accept responsibility for the accuracy of these listings. For current, up-to-the-moment information on Cirque's whereabouts, please visit Cirque's website: < http://www.cirquedusoleil.com/ >, or for a more comprehensive tour listing, visit our Itinéraire section online at: < http://www.cirquefascination.com/?page_id=6898 >. ------------------------------------ BIGTOP - Under the Grand Chapiteau ------------------------------------ Alegría-In a New Light: Portland, OR -- Jun 4, 2021 to Jul 18, 2021 Denver, CO -- Aug 6, 2021 to Sep 12, 2021 Bazzar: Not Currently Scheduled Koozå: Zurich, CH -- TBA Washington, DC -- Jul 21, 2021 to Sep 19, 2021 Kurios: Melbourne, AU -- TBA Adelaide, AU -- TBA Luzia: Madrid, ES -- Rescheduled Barcelona, ES -- Jan 21, 2021 to Feb 21, 2021 Totem: Rome, IT -- Mar 17 2021 to Apr 25, 2021 Milan, IT -- May 5, 2021 to Jun 20, 2021 Prague, CZ -- TBA Under the Same Sky: Montreal, QC -- Apr 22, 2021 to Aug 15, 2021 VOLTA: Not Currently Scheduled ------------------------------------ ARENA - In Stadium-Like Venues ------------------------------------ OVO: Beijing, CN -- TBA Shanghai, CN -- TBA Shenzhen, CN -- TBA Guangzhou, CN -- TBA CRYSTAL - A BREAKTHROUGH ICE EXPERIENCE: Hanover, DE -- Sep 22, 2021 - Sep 26, 2021 Leipzip, DE -- Sep 29, 2021 - Oct 3, 2021 Nuremberg, DE -- Oct 6, 2021 - Oct 10, 2021 Cologne, DE -- Oct 13, 2021 - Oct 17, 2021 Oberhausen, DE -- Oct 27, 2021 - Oct 31, 2021 Munich, DE -- Nov 4, 2021 - Nov 7, 2021 Frankfurt, DE -- Nov 10, 2021 - Nov 14, 2021 Stuttgart, DE -- Dec 1, 2021 - Dec 5, 2021 CORTEO: Trondheim, NO -- Sep 17, 2020 to Sep 20 2020 Oslo, NO -- Sep 23, 2020 to Sep 27, 2020 Vilinius, LT -- Nov 26, 2020 to Nov 29, 2020 Antwerp, BE -- Jun 17, 2021 to Jun 27, 2021 London, UK -- Jun 30, 2021 to Jul 11, 2021 Dublin, IE -- Jul 14, 2021 to Jul 25, 2021 Palma de Mallorca, ES -- Aug 6, 2021 to Aug 15, 2021 Nice, FR -- Aug 19, 2021 to Aug 22, 2021 Aix-en-Provence, FR -- Oct 27, 2021 to Oct 31, 2021 Monpellier, FR -- Nov 4, 2021 to Nov 7, 2021 AXEL: Not Currently Scheduled Messi10: Buenos Aires -- Being Rescheduled --------------------------------- RESIDENT - en Le Théâtre --------------------------------- JOYÀ: Location: Riviera Maya, Mexico Performs: Tuesday through Saturday, Dark: Sunday/Monday Shows restarted on July 3, 2020 X: THE LAND OF FANTASY Location: Hangzhou, China Performances of "X: The Land of Fantasy" staged on Fridays, Saturdays, and Sundays starting June 3, 2020 ======================================================================= OUTREACH - UPDATES FROM CIRQUE's SOCIAL WIDGETS ======================================================================= o) CIRQUECONNECT SPECIALS Enjoy a front-row seat to awe-inspiring moments of the larger- than-life shows, with never-before seen angles that can only be experienced on your screen. - SPECIAL #12: CLASSICS: REINVENTE, NOUVELLE, SALTIMBANCO {Jun.12} https://www.youtube.com/watch?v=gksSaezV8xY - SPECIAL #13: BEHIND THE CURTAIN OF "O" {Jun.19} https://www.youtube.com/watch?v=qRevsCt6Tcs - SPECIAL #14: LA NOUBA, VAREKAI, QUIDAM {Jun.26} https://www.youtube.com/watch?v=mYvs4Avhgp0 - SPECIAL #15: BEST OF AERIAL {Jul.03} https://www.youtube.com/watch?v=bL3X1KZc48A - SPECIAL #16: LUZIA, BAZZAR, KURIOS {Jul.10} https://www.youtube.com/watch?v=IN8tkrHHXLw o) THE CIRQUE LIFE PROJECT The mission behind The Cirquelife Project it to keep the performing arts world alive during these difficult times. - EPISODE 1 {Jul.01} https://youtu.be/rw4y6df7XQo - EPISODE 2 {Jul.08} https://youtu.be/QyahU2SPUcs ======================================================================= COPYRIGHT AND DISCLAIMER ======================================================================= Fascination! Newsletter Volume 20, Number 7 (Issue #198) - July 2020 "Fascination! Newsletter" is a concept by Ricky Russo. Copyright (C) 2001-2020 Ricky Russo, published by Vortex/RGR Productions, a subsidiary of Communicore Enterprises. No portion of this newsletter can be reproduced, published in any form or forum, quoted or translated without the consent of the "Fascination! Newsletter." By sending us correspondence, you give us permission (unless otherwise noted) to use the submission as we see fit, without remuneration. All submissions become the property of the "Fascination! Newsletter." "Fascination! Newsletter" is not affiliated in any way with Cirque du Soleil. Cirque du Soleil and all its creations are Copyright (C) and are registered trademarks (TM) of Cirque du Soleil, Inc., All Rights Reserved. No copyright infringement intended. { Jul.15.2020 } =======================================================================