The shit show that is SFX Entertainment takes yet another turn. The live events conglomerate founded by media entrepreneur Robert F. X. Sillerman announced today it was filing for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware. In order to stay afloat the trouble company will “restructure 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.” Part of the restructuring includes an RSA that includes a commitment from an ad hoc group to provide up to $115 million in DIP (debtor-in-possession) financing. A full list of debtors can be viewed here.
Obligatory press release gush from Robert F.X. Sillerman, Chairman and CEO: “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.”
The company’s new financing—which is subject to court approval—will be used to pay ongoing, normal course of business, obligations including artists, venues, sponsors, partners, vendors and suppliers. All of SFX’s upcoming events are expected to run business as usual.
Update – 10:15 am EST. Beatport, which is owned by SFX, has issued a statement regarding the bankruptcy:
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.