Monday, 1 February 2016

SFX files for Chapter 11 Bankrupcy

SFX Entertainment has filed for Chapter 11 bankruptcy in the US. The EDM, Tomorrowland. and Beatport owner will see $300m in debt wiped off  it's balance sheet, and see it go private as part of a new Restructuring Support Agreement (RSA) with creditors. Robert Sillerman is stepping down as CEO as part of the bankruptcy process, but will remain as Chairman. SFX says it has reached an agreement with an ad hoc group of bondholders (“ad hoc group”) to significantly restructure the Company’s outstanding debt, including the conversion of ‘the majority of the bondholder group debt into equity in a newly strengthened private company’. These ‘ad hoc bondholders’ have additionally agreed to provide SFX up to $115m in DIP (debtor-in-possession) financing, allowing the firm to operate as normally as possible over the next few months. Beatport moved to reassure its partners that it’s “business as usual” at the service – including royalty payments to labels – despite parent SFX filing for Chapter 11 bankruptcy

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