Music festival promoter SFX files for bankruptcy protection

As expected, troubled EDM giant SFX has filed for Chapter 11 bankruptcy. In the days that followed, SFX announced $20 million in fresh financing that allowed the company to continue negotiating with debtholders. Earlier this month it was then reported that SFX were “considering filing for bankruptcy”. SFX and the ad hoc group have entered into a Restructuring Support Agreement (‘RSA’) that will eliminate more than $300 million in debt from its balance sheet, provide significant working capital and convert the majority of the bondholder group debt into equity in a newly strengthened private company.

“All scheduled and planned events and festivals will take place without interruption providing SFX’s millions of fans an uninterrupted season of spectacular experiences”, according to the release.

Sillerman restarted SFX Entertainment in 2012 as he saw the burgeoning market for electronic dance music, including huge crowds for DJs at festivals and the dominance of electronic tracks on streaming sites.

During the reorganization, the shows will go on and a search will begin for a new chief executive officer, Sillerman said in a statement.

He restarted the live-event business in 2011 with a focus on electronic-music festivals and took the business public in 2013.

Sillerman, founder of radio-station owner SFX Broadcasting, created the predecessor to what is now the world’s largest concert promoter, Live Nation Entertainment Inc., selling it for $4 billion to Clear Channel Communications Inc.in 2000. It also settled a $100 million lawsuit accusing Sillerman of defrauding three alleged SFX co-founders who accused Sillerman of stealing the idea for the company.