The U.S. Bankruptcy Court approved SFX Entertainment’s motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including August 29, 2016 and October 28, 2016, respectively.
As previously reported, “Since the Petition Date, almost four months ago, the Debtors focused their efforts on stabilizing their domestic operations and the open issues surrounding their foreign subsidiaries’ operations. The Debtors expended significant resources in negotiating with artists, entering into critical vendor agreements, and promoting and producing the Debtors’ larger events and festivals that are held in the summer.”
Court-filed documents continued, “The actions taken by the Debtors in the early stages of these Chapter 11 Cases laid the groundwork for the Debtors to minimize the impact these Chapter 11 Cases may have had on the Debtors’ festivals and events. Additionally, the Debtors developed and began to implement a business plan to reduce overhead expenses and began to resolve the various disputes affecting the Debtors’ operations and estates. All of these issues will influence the Debtors’ exit strategy for these Chapter 11 Cases and make it premature for the Debtors to have fully developed the terms of a plan of reorganization. Allowing the Exclusive Periods to terminate before plan negotiations and preparation have concluded would defeat the purpose of section 1121 of the Bankruptcy Code–to afford the Debtors a meaningful and reasonable opportunity to propose and confirm a consensual plan of reorganization.”
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