MONTRÉAL, May 4, 2020 /CNW Telbec/
- The management of the Cirque du Soleil (the Cirque) has
regrettably decided to make public the proposals it has received
from Quebecor, which had been sent in confidence to the various
stakeholders, including numerous ranks of creditors and
shareholders. This move comes at a time when the Cirque faces
considerable uncertainty. Indeed, the company itself has raised the
possibility of initiating proceedings to place itself under the
protection of the Companies' Creditors Arrangement Act
(C-36). Under the circumstances, Quebecor has no choice but to
publicly clarify its desire and determination to help save the
Cirque, a creative powerhouse which is an economic engine for
Montréal and all of Québec, and an ambassador for Québec talent on
the international stage.
![Logo: Quebecor Inc. (CNW Group/Quebecor) Logo: Quebecor Inc. (CNW Group/Quebecor)](https://mma.prnewswire.com/media/1163752/Quebecor_Statement_by_Quebecor_on_the_Cirque_du_Soleil.jpg)
Like all Quebecers, we were surprised to learn of the extent of
the Cirque's difficulties. Though it was known before the current
health crisis that the Cirque had problems, there was no reason to
suspect they were so serious that the Cirque would be unable to pay
its employees and artists, who are the sinews of the company and
are now being left stranded. The fact that a business of this size
did not have enough cash on hand to cover the essentials is
cause for concern, especially in view of the opinion issued by
Moody's, which downgraded the Cirque recently: "The company's
financial policy that favors shareholders has increased credit
risk, which together with the recent deterioration in performance
has resulted in a weaker financial profile."
It was against this backdrop that Quebecor decided it wanted to
help save the Cirque and would, as a first step, consider extending
short-term financing of several tens of millions of dollars to
cover payroll for thousands of employees and meet various
obligations, such as the outstanding bills of suppliers who have
not been paid for months.
In phase two, Quebecor would be prepared to inject several
hundred million dollars to enable the Cirque to resume its
activities and ensure its sustainability. To do so, however, we
need access to a detailed analysis of Cirque's financial position,
which we have been unable to obtain to date because our attempts
have been rebuffed by Cirque management.
We fail to understand the lack of urgency on the part of Cirque
management. With every passing day, the company's future is being
dangerously compromised and its creative forces, which involve
thousands of jobs, are suffering significant harm. The time to act
is now, before legal proceedings are initiated under the
Companies' Creditors Arrangement Act (C-36). Such
proceedings would result in a loss of control and could lead to an
outcome that political authorities will regret. If the Cirque goes
to the highest bidder, and no other considerations are taken into
account, the presence of its head office in Montréal and the
associated economic activity could disappear in the medium term,
following many other Québec companies that have suffered the same
fate.
Quebecor wants to secure the future of the Cirque's activities
in Montréal and in Québec, and we have all the assets and expertise
required to do so. Quebecor is well capitalized and has the
substantial financial resources required for the revival of the
Cirque. Quebecor management will deploy all necessary means to
close this sad episode, which is affecting the thousands of artists
and cultural workers who are responsible for the Cirque's success,
and ultimately to restore the self-assurance, dynamism and
enthusiasm that are part of the Cirque's DNA.
The time to act is now, before it is too late.
About Quebecor
Quebecor, a Canadian leader in
telecommunications, entertainment, news media and culture, is one
of the best-performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high-quality, multiplatform,
convergent products and services.
Québec-based Quebecor (TSX: QBR.A, QBR.B) employs more than
10,000 people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports more
than 400 organizations in the vital fields of culture, health,
education, the environment and entrepreneurship.
Visit our website: www.quebecor.com
Follow us on Twitter: twitter.com/Quebecor
SOURCE Quebecor