The Company Behind The Biggest EDM Festivals In The World Declares Bankruptcy

Posted at February 2nd, 2016 | by Supreet.cheema | in

The company behind the BIGGEST dance music festivals and the owner of Beatport, SFX Entertainment, filed for Chapter 11 Bankruptcy on Monday. Looks like the $20 million funding received by the company in mid-January was not enough get it out of the long history of financial difficulties.

In 2015, SFX Founder Robert F.X. Sillerman abandoned a takeover bid and its stock plunged by more than 95 percent. The deal, a debt-for-inequity swap with bondholders, struck on Monday will eliminate more than $300 million in debt from its balance sheet and will install a new chief executive to replace Sillerman.

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

While initially it was announced that even though SFX will undergo internal reorganization plan, all scheduled festivals and events will continue to happen as planned. But now sources are saying otherwise. A spokesperson for Tomorrowland, Debby Wilmsen has made indications that TomorrowWorld may not return this year saying, “In light of the present situation, no concrete plans have yet been made for TomorrowWorld 2016.” Though she provided assurance that Tomorrowland and Tomorrowland Brasil will remain unaffected.

The festival in Belgium is created, organized and managed for 100 % by the Belgian team. Tomorrowland Brazil will also take place as planned two months from now in Itu (Sao Paulo). Tomorrowland Brazil is being organized in close consultation with the Belgian team by a motivated Brazilian team that is able to work independently of SFX in North America for all aspects of the event.” Wilmsen

 

 

Supreet.cheema

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