According to the U.S. Bankruptcy Court docket, SFX Entertainment and 43 affiliated Debtors filed for Chapter 11 protection in the District of Delaware, lead case number 16-10238. The Company’s international operating subsidiaries are not included and will not be impacted by the filing. The Company, which produces live events and digital entertainment content, is represented by Dennis A. Meloro of Greenberg Traurig.
The Company announced that it has reached an agreement with an ad hoc group of bondholders to significantly restructure its outstanding debt. SFX Entertainment and the ad hoc group have entered into a restructuring support agreement (RSA) that will eliminate 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 private company.
Robert F.X. Sillerman, chairman and C.E.O., comments, “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 RSA includes a commitment from the ad hoc group to provide up to $115 million in D.I.P. financing.
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