Multinational music company, SFX Entertainment, has filled for bankruptcy on Monday, 1st Feb 2016. The bankruptcy has been filled to wipe out a $300 Million in debt from its balance sheet and take the business to private investors. The bankruptcy cames after SFX defaulted on a $3 Million payment to bondholders.
The company has tried to manage its increasing financial risk by trying to raise finance after defaulting on its $220 million bond debt and $30 rolling credit facility cross debt default covenants. SFXs efforts to raise new finance were not enough to convince debt holders, hence the company has decided to file for bankruptcy in effort to restructure the company and allow it to held as a private limited company. The debt for equity private swap will allow the company to continue normal operations during the bankruptcy case. The deal will also usher in a new chief executive, to succeed current CEO and Chairman Robert F.X. Sillerman.
The New York based SFX Entertainment owners one of the biggest online dance music retailers, Beatport, and runs some of the biggest music festivals in the world like Tomorrowland, Mysteryland and Sensation
Read more about this breaking news for House Music on the Wall Street Journal:
Posted on : 2016-02-01