SFX Files For Bankruptcy, Erases $300 Million In Debt
SFXE has filed a Chapter 11 bankruptcy petition that, if approved, would erase $300 million in debt from bond holders and eventually take the company private. Founder Robert Sillerman will step down as CEO, but remain Chairmen.
As expected, troubled EDM giant SFX has filed for Chapter 11 bankruptcy. Along with the filing comes word that a group of bondholders have agreed to erase $300 million in debt.
The restructuring includes a commitment from the bondholders to provide up to $115 million in DIP (debtor-in-possession) financing. This financing, which is subject to court approval, will be used to pay ongoing, normal course of business, obligations including artists, venues, sponsors, partners, vendors and suppliers.
The company’s international operations are not included in the deal and will not be impacted by the bankruptcy. SFX says it will continue to book and produce its many live festivals and events in the US and globally without interruption.
Robert F.X. Sillerman, Chairman and CEO said in statement, “This expression of confidence from our lenders is testimonial to the vibrancy and potential of our business, and the dedication and professionalism of the over 600 people who make up SFX. Of course this was not where we thought we’d be but with this restructuring we have the opportunity to achieve all that SFX can and will be. I’m looking forward to continuing to be part of the new SFX as Chairman. We will immediately commence a search for a new CEO to lead us as we continue to set the trend in the exploding culture that is electronic music.”
