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Fascination Issue 198
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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
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http://www.CirqueFascination.com
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VOLUME 20, NUMBER 7 July 2020 ISSUE #198
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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!
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- Ricky "Richasi" Russo
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CONTENTS
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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
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CIRQUE BUZZ -- NEWS, RUMOURS & SIGHTINGS
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LA PRESSE -- General News & Highlights
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Cirque has lost its way, co-founder Ste-Croix says
{Jun.17.2020}
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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 }
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Laliberté accepts Dragone's support but not financially
{Jun.23.2020}
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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 }
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Cirque du Soleil Files For Bankruptcy Protection
{Jun.29.2020}
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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 }
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Cirque Announces Comprehensive Plan to Restart Business
{Jun.29.2020}
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* 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 }
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Don't Blame the Virus for Cirque du Soleil's Trouble
{Jun.30.2020}
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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 }
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Lenders Want CEO Lamarre out of Cirque du Soleil
{Jul.01.2020}
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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 }
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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 }
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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 companys 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 Mexicos 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 LaRances 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 Heards 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 NBCs Tonight Show with Jay Leno, which
led to some acting roles, including a part in Steven Spielbergs 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 theyre
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
Cirques 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 theres 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 debtors 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 companys 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 Cirques 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, Chinas 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 }
=======================================================================
