Cirque du Soleil recently issued a statement stating that it has filed for bankruptcy protection。It is reported，The reason for bankruptcy is mainly affected by the new crown epidemic，At the same time, Cirque du Soleil will restructure its debt with the assistance of the Canadian government and private equity firms。

As the second largest shareholder，The Chinese shareholder Fosun Group responded to the China Times reporter on the bankruptcy of Cirque du Soleil today (July 1) evening: "The shareholders will, as always, provide important financial support to Cirque du Soleil、Operational and strategic support，Aimed to help companies retain and rebuild their brands as the global entertainment industry faces continued negative impacts。”

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Evening of June 3rd，Cirque du Soleil's "X Fantasy", which has been suspended for 4 months due to the new coronavirus epidemic, has officially resumed at the Xintiandi Sun Theater in Xiacheng District, Hangzhou - this is also the first revival of Cirque du Soleil Entertainment Group in the world. Project。

But the performance is as dazzling as before，Also well received，But it failed to bring any change to Cirque du Soleil, which was on the verge of bankruptcy，Montreal, Canada, June 29, local time，Cirque du Soleil issued a statement，A bankruptcy protection application has been submitted to the court。

Announcement states，Cirque du Soleil’s parent company (Cirque du Soleil Entertainment Group) is restructuring its capital structure，Application for creditor protection under the Companies’ Creditors Arrangements Act (CCAA)，In response to the huge disruption caused by the new coronavirus epidemic and the forced closure of performances。At present, the company has cooperated with the shareholder international private equity investment company TPG、Fosun International、Caisse and Investissement du Québec (IQ) signed a “fake horse agreement”，That is, the buyer selected by the company filing for bankruptcy protection puts forward the initial public bidding price，This upward bidding method can prevent bankrupt companies from being forced to accept lower bids。

According to agreement，IQ and TPG、Fosun、Caisse will inject US$300 million in liquidity into the reorganized company to help Cirque du Soleil restart its business，will be responsible for a dedicated employee fund of $15 million and a contractor fund of $5 million、Providing financial assistance to laid off employees and payment of outstanding company debts to contractors。

Daniel Lamarre, President and CEO of Cirque du Soleil, said in an interview，The proposal would reduce the debt of reorganized Cirque du Soleil to approximately 2.USD 500 million。Currently，Cirque du Soleil has nearly $1.6 billion in debt。

Cirque du Soleil’s filing for bankruptcy is not sudden。Comprehensive media reports show，Since this year，Affected by the new coronavirus epidemic，Cirque du Soleil was forced to cancel 44 shows，And announced two major layoffs，Finally 4679 employees were fired，About 95% of the total number of employees。At that time，Daniel Lamar 188bet online sports betting said publicly: "Cirque du Soleil has experienced the most difficult day in its history。”

March 18 this year，The well-known rating agency Moody’s even lowered the credit rating of Cirque du Soleil to junk status，Warning that there is a risk of default。The agency’s analysis pointed out，Cirque du Soleil’s product operation structure is single，Leaves them vulnerable to events beyond their control，For example, natural disaster、Changes in consumer income and discretionary spending、Competition from other competitors, etc.。

For the future，Cirque du Soleil still has some expectations: in addition to hoping to reorganize into a leaner team with an initial number of about 1,000 employees，Lamar also hopes that the company can hold a show in Las Vegas as early as November this year。And if circumstances permit，Tour may return in 2021。

Fosun has entered the legal restructuring and bidding process

"As a long-term investor in the company，Fosun managed funds and TPG、Caisse、IQ Cooperation，Entering the statutory reorganization and bidding process。”Evening of July 1st，As a joint controlling party，Fosun Group, which holds about 25% of the shares, responded to the China Times reporter on the bankruptcy of Cirque du Soleil，And emphasized that “shareholders will continue to provide important financial support to Cirque du Soleil、Operational and strategic support，Aimed at helping companies retain and rebuild their brands as the global entertainment industry faces continued negative impacts”。

Public information display，April 2015，Fosun Group announces investment in Cirque du Soleil。At that time，Fosun International announced on its official WeChat account that it will join hands with international private equity investment company TPG to acquire a majority stake in Cirque du Soleil ("Cirque du Soleil"), the world's leading high-end arts and entertainment production 188bet app company，Cirque du Soleil follows Fosun’s investment in Club Med、Atlantis Sanya、Thomas Cook、FolliFollie、St.John、Another important layout in the happy fashion sector after leading global brands such as Studio 8。

There are reports，Fosun Group suffered heavy losses this time。How big is Fosun’s investment loss？Fosun Group, which needs to bear huge debts, did not reply to the China Times reporter。But according to previous media reports，Fosun Group invested hundreds of millions of yuan just for Cirque du Soleil to expand the Chinese market，The construction cost of the Hangzhou Resident Show Theater is almost 1.USD 4.8 billion (approximately RMB 1 billion)，It is reported that the location of the resident show is in the Xintiandi project in Hangzhou，Invested and constructed by Fosun。

It is worth mentioning，The bankruptcy of Cirque du Soleil is not the first setback for Fosun Group’s overseas investment。For example，September last year，The world’s first travel agency, Thomas Cook Group, declares bankruptcy and liquidation，Holding 11 shares at that time.The stock price of Fuxing Tourism and Culture Group (hereinafter referred to as "Fosun Tourism") fell by 38%。

Since this year，With the "black swan" of the new coronavirus epidemic expanding globally，Since many businesses involve the European sector，Fosun’s tourism and culture business will inevitably be affected。

Early April this year，When asked by the media whether Fosun Tourism will drag down the company’s capital chain，Fosun International Chairman Guo Guangchang said frankly，If the epidemic drags on for a whole year，It will definitely have an impact on the tourism business。“Fortunately, Fosun Group and the tourism sector have sufficient 188bet sports betting app download cash，So these impacts are also short-term for us。"Guo Guangchang said。

"China Times" reporter noticed，When the domestic new coronavirus pneumonia epidemic is effectively controlled，Fosun’s layout in the domestic cultural tourism market is obviously tilted，Especially in Sanya and Hainan markets，It moves more frequently。

April 13，Sanya Municipal Government and Shanghai Fosun Tourism Group signed a strategic cooperation agreement。Fosun Tourism Group plans to spend huge sums of money to build "Sanya Foyou City"；June 2，Relevant person from Fosun revealed，Fosun will launch Atlantis Sanya、Sanya Club Med，And future projects such as "Sanya·Fuyou City" will be the core focus，Continuously increase investment in Hainan tourism。At the same time，Fosun will also give full play to its role in health、Happy、Advantages of industrial agglomeration in terms of prosperity and other businesses，Helping Hainan continue to grow its tourism industry、Modern service industry and high-tech industry clusters，Continue to lead the upgrade of Hainan’s industrial city。

*Source of this article:China Times, author: Li Beibei , original title：《Cirque du Soleil files for bankruptcy，Fosun, the second shareholder, emphasized that it will help "retain and rebuild the brand"》.