Former SFX CEO seeks lawsuit protection during bankruptcy restructuring
Former CEO of SFX Robert Sillerman is seeking protection against an ongoing lawsuit against him. In the throes of his company’s restructuring, Sillerman has asked the judge presiding in the lawsuit to pause the process while the floundering promoter concludes its chapter 11 process. In a statement from early February, Sillerman optimistically framed the bankruptcy restructuring as an “opportunity to achieve all that SFX can and will be.”
The deposed chairman seeks a temporary respite from the lawsuit because it is “an enormous distraction” to the company and that it needs “all of [its] team focused.” The lawsuit accuses Sillerman of inflating SFX’s stock price through statements he made about the conglomerate’s health. An SEC filing earlier in February revealed a negative cash balance of $29.9 million as recently as January. Major debts included a $7 million settlement from a case brought against Sillerman regarding SFX’s creation, and payment plan-style deferred price payments related to festival acquisitions.