In June 2020, Cirque du Soleil filed for bankruptcy protection under the Companies' Creditors Arrangement Act (CCAA). The Cirque du Soleil lost its main revenue stream after having had to suspend its operations due to the closing of the show venues during the COVID-19 crisis. This major player in the entertainment industry has laid off more than 5,000 employees, or 95% of its workforce. Total debt is estimated at US$1.6 billion.
To deal with this situation, the Cirque filed for bankruptcy protection under the CCAA. It benefited from the expertise of Ernst & Young acting as monitor, who sought legal advice from Fasken to organize the restructuring. Investors have come forward to financially support the Cirque, for up to $300 million Canadian. Among these are Investissement Québec, the investment arm of the Government of Québec. The creditors of the Cirque proceeded with its acquisition, by a transaction approved by the Court and subject to a reverse vesting order.As part of this mandate, Ernst & Young received legal advice from Fasken. Luc Béliveau's team consisted of Marc-André Morin (commercial restructuring), Martin Legault (tax), Antonella Penta (corporate and commercial law) and Vincent Chaurette (mergers and acquisitions).