SFX Entertainment files for chapter 11 bankruptcy
Despite receiving $20 million in funding in mid-January, SFX Entertainment has filed for chapter 11 bankruptcy following a lengthy string of financial difficulties. Its international subsidiaries, however, are excluded from the filing.
After multiple attempts to restructure the company in 2015, SFX has entered into a Restructuring Support Agreement in which it will finally go private this year. The deal will erase $300 million from the conglomerate’s outstanding debt and convert most of the bondholder group debt into equity.
Robert F.X. Sillerman will also officially step down from his title as CEO of SFX: “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.”
Though the dance music giant will undergo a number of internal changes, all scheduled festivals and events will continue to happen as planned.
Update: Beatport has since offered a statement regarding its parent company’s financial reorganization plan, assuring users that the store will stay up and running.
“For all of us here at Beatport, it’s just business as usual. That means entire Beatport platform is fully operational without restriction. The store remains open. The streaming service continues uninterrupted. New releases are being added every day. New videos are being scheduled and filmed. Payments to labels and suppliers are ongoing in their usual manner.
We look forward to SFX successfully navigating this reorganization, and in the meantime will continue focusing on building the best music experience for the fans, artists, and DJs that make up the electronic music community.”
Read Beatport’s statement in full here.
Via: Street Insider