Despite receiving $20 million in funding in mid-January, SFX Entertainment has filed for chapter 11 bankruptcy following a lengthy string of financial difficulties. The deal will erase $300 million from the conglomerate's outstanding debt and convert most of the bondholder group debt into equity. It also expects the restructuring will provide "significant working capital" that should help the incoming CEO revive the company.
The move comes around three weeks after it was reported that the company was considering filing for bankruptcy, and that GoldenTreeAsset Management assigned the troubled EDM promoter's revolving credit facility to Catalyst Fund Limited Partnership V on December 31.
New York-based SFX produces electronic music concerts throughout the year in 19 countries including the USA, where some of its best known festivals include Electric Zoo in NY and TomorrowWorld in Atlanta.
He restarted the live-event business in 2011 with a focus on electronic-music festivals and took the business public in 2013.
SFX in 2014 acquired a 50 per cent stake in Rock in Rio, the Brazilian festival that has gone global, and started Rock in Rio USA in Las Vegas.
Announcing the bankruptcy filing, Sillerman said the company would look for a new chief executive officer although he will stay in the role of chairman.
