SFX Entertainment Inc., the well-known electronic music concert producer that puts on popular events including Electric Zoo in New York and Tomorrowworld in Atlanta, has officially filed for chapter 11 bankruptcy.
This deal will allow the company to wipe its $300 million in debt from its balance sheet and shift from public to private. It also comes with a new CEO that will replace the current COE and Chairman, Robert F.X. Sillerman. Sillerman had attempted to take the company private previously, but failed.
This decision was first considered back in January and is described by The Wall Street Journal as a debt-for-equity swap with bondholders. The filing provides $115 million in bankrupcy financing so that SFX can continue to run normally during the bankruptcy case.
As SFX is the parent company of Beatport, concerns have arisen regarding its future. Beatport released a statement regarding the bankruptcy.
“For all of us here at Beatport, it’s just business as usual… the entire Beatform platform is fully operational without restriction. The store remains open. The streaming service continues uninterrupted. ew 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.”
SFX is hoping to exit chapter 11 within six months, post-restructuring.