After all the drama which took place in 2015, it seems like the unfortunate day for SFX Entertainment has finally arrived. The American giant has been in turmoil for quite some time now, owing to severe financial problems which was marred even more by further lawsuits. A horror story for them indeed, the organization has filed for Chapter 11 bankruptcy in order to assure its further existence. The forthcoming deal will nullify their existing $300 million debt as well as undergo reforms to go private. This news has also brought about that current CEO Robert Sillerman will step down from his position as the company will be headed by another person in the near future which will be decided upon in time. Robert also commented on the major happening –
“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. 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.”
What this debt does secure for the fallen giant is their new found restructuring procedure which will provide them $115 million for their initial continuity and as well as to function the major music platform, Beatport. (You can read their full statement here.) Their latest oncoming has put a major question mark on the occurrence of this year’s TomorrowWorld in the United States while their sister festivals in Brazil and Belgium will take place as scheduled. You can read the full statement from Tomorrowland spokesperson Debby Wilmsen below:
“Both the festival in Boom (Belgium) and the one in Itu (Sao Paulo, Brazil) will go ahead without any disruption due to the current situation. In light of the present situation, no concrete plans have yet been made for TomorrowWorld 2016.
We are currently exploring all possibilities. Tomorrowland has always worked from a long-term philosophy and in this context, all options are being considered to ensure that, like in Belgium and Brazil, the festival will have a bright future in the United States as well.
In the past few months, it had been clear that SFX, our partner for TomorrowWorld and Tomorrowland Brasil, is experiencing financial difficulties. Last night we received the news that SFX Entertainment, the publicly listed American company founded by Robert F.X. Sillerman, has applied for Chapter 11 bankruptcy protection from creditors. In the coming weeks, SFX will be undergoing a financial and operational reorganization. SFX Entertainment is a stakeholder in numerous events and projects including Awakenings, Sensation, Nature One, Electric Zoo and Rock in Rio.
Since 2013 we have collaborated with SFX for the foreign editions of Tomorrowland held in the USA and Brazil. However, we have noticed that our vision and goals, including a long-term strategy, are different from those of the publicly listed company.
In 2013 the Dutch company ID&T, which then owned 50% of the shares in Tomorrowland, sold its business to the American SFX. Manu & Michiel Beers then decided to buy back the 50% stake that the Dutch ID&T held in Tomorrowland in Belgium, with the result that for the past two years, the Tomorrowland festival has been 100% Belgian, but this has entailed an obligation to collaborate SFX for the foreign editions.
The Belgian festival Tomorrowland remains the passion and life’s work of the driving forces behind its creation, Manu & Michiel Beers and their young, motivated staff in Antwerp and they intend to continue to bring the same level of ambition to the festivals in Belgium and abroad in the coming years.
The Chapter 11 procedure will have no consequences for Tomorrowland in Boom. The festival in Belgium is created, organized and managed for 100 % by the Belgian team. Tomorrowland Brazil will also take place as planned two months from now in Itu (Sao Paulo). Tomorrowland Brazil is being organized in close consultation with the Belgian team by a motivated Brazilian team that is able to work independently of SFX in North America for all aspects of the event.”
Source : Insider / Wall Street Journal / Georgia Unfiltered
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