With SFX filing for Chapter 11 bankruptcy last week, which virtually wiped away $300 million in their outstanding debt, it seems like the EDM promotion giant\’s high-profile financial woes are all we seem to care about reporting lately. Rumors continue to abound that TomorrowWorld 2016 is in trouble. News has also circulated that Robert Sillerman will be replaced as CEO but will remain chairman of the company. After a lawsuit settlement at the end of last month, which alleged the chairman stole the idea for the consolidated EDM promoter that became SFX, Sillerman said the following in a public statement:
\”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.\”
Despite being granted $80 million in restructuring loans, news recently broke of just how much SFX owes to it\’s list of creditors. Of the 40 companies with which SFX holds outstanding debts, the bottom of the list includes the likes of Facebook ($313,904), Front Gate Ticketing ($301,385), and even Enterprise Rent a Car ($250,645).
According to IQ Mag, 11 of SFX Entertainment\’s 13 largest non-insider creditors are the owners companies purchased by SFX. What this means, continues IQ Mag, is that a large proportion of SFX Entertainment’s creditors are still deeply involved in the company – and have a vested interest in seeing it continue in one form or another. Here\’s the list of EDM companies that top the list:
The largest unsecured creditor is Dutch EDM firm Alda Events, the promoter behind Amsterdam Music Festival and The Flying Dutch, which is owed $23.6 million.
SFX also owes $10 million to Made Events, creators of Electric Zoo in New York, Electric Zoo Mexico City and Electric Zoo Beach Tokyo.
Chicago promoter React Presents, which organizes Summer Set Music & Camping Festival and Spring Awakening, and also owns Clubtix, Inc., is out $5.8m.
Currently, SFX’s assets are valued at $661.614 million, with a total debt accrual of $490.236 million.
Sure, all these numbers seem to come as a huge downer for EDM fans around the globe. But if one reads through the lines of the plethora of public statements being released by SFX and it\’s subsidiaries, it\’s obvious the show will be going on in all regards. I personally like to think of SFX as the Wall Street of EDM…it\’s just too big to fail!!