SFX Encounters New Financial Woes
SFX Entertainment just cant avoid bad luck. The large corporation has been in the news quite a bit recently but for all the wrong reasons. Debt, failing business ventures and bankruptcy is all we have heard about SFX the past couple years.
A plan was set up for SFX to eliminate $300 million for the company called a bondholder-supported restructuring agreement. It was supposed to make it easier for the business to pull out of bankruptcy but we have learned the agreement has fallen apart. The company had stated last Friday that its agreement was terminated and added that the development allows it to pursue “more comprehensive negotiations with all of its constituents with the goal of developing a consensual Plan of Reorganization.” Originally SFX wanted to end its Chapter 11 bankruptcy within 6 moths but now says there is no timeline. The original plan was a debt-for-equity swap with bondholders that also gave $115 million in bankruptcy financing. The deal also required SFX to hire a new CEO to succeed current CEO and Chairman Robert F.X. Sillerman. There is currently “no set timeline” for formulating a new rescue plan and it is difficult to see how SFX stays afloat without any new financing options. Lets hope the company can get on its feet soon an keep providing big fests.
Source: IQ Index