SFX Entertainment, the owner of Beatport, Tomorrowland and Electric Zoo, has filed for Chapter 11 bankruptcy after over a year of financial trouble.
So what does this exactly mean?
Well the EDM giant filed for bankruptcy today, executing a deal that swipes $300million in debt from its balance sheet and takes the company private. The deal, a debt for equity swap with bondholders, provides $115million in financing to allow the company to continue normal operations during the bankruptcy case.
So basically while the company will continue to go on as is, just CEO & Chairman Robert F.X. Sillerman will be replaced. The company have agreed to the principal terms of a Chapter 11 Plan of Reorganization.
“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.”– Robert F.X. Sillerman
We can’t say we didn’t see this coming after the company was going through quite a rough patch since a while. Guess it’s finally over for the chairman as a new direction follows in the future.
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