SFX Entertainment, Inc., the parent company of the Tomorrowworld music festival held in Chattahoochee Hills, Georgia, today announced that it has filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company's international operating subsidiaries are not included and will not be impacted by the filing.
The bankruptcy filing will eliminate more than $300 million in debt from its balance sheet, and an ad hoc group of bondholders have agreed to provide up to $115 million in DIP (debtor-in-possession) financing.
This financing, which is subject to court approval, will be used to pay ongoing, normal course of business, obligations including artists, venues, sponsors, partners, vendors and suppliers.
"This expression of confidence from our lenders is testimonial to the vibrancy and potential of our business, and the dedication and professionalism of the over 600 people who make up SFX," said Company founder and CEO Robert F.X. Sillerman. "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."
SFX Entertainment, Inc. is the largest global producer of live events and digital entertainment content focused exclusively on electronic music culture (EMC), which includes leading brands such as Tomorrowland, TomorrowWorld, Mysteryland, Sensation, Stereosonic, Electric Zoo, Disco Donnie Presents, Life in Color, Rock in Rio, Nature One, Mayday, Decibel, Q-Dance, Awakenings, and React Presents.