Music company files for bankruptcy

| Feb 3, 2016 | Business & Commercial Bankruptcy |

In 2013, SFX Entertainment went public on the National Association of Securities Dealer Automated Quotation (NASDAQ) system. New York residents had the opportunity to buy stock in the entity and like other businesses that leave their privately owned statuses behind, SFX Entertainment likely sought to grow as a result of its conversion. However, SFX Entertainment’s experience as a publicly traded entity has not been a smooth one and it has attempted several times to convert back to a private business in order to protect its future.

After its latest attempt to go private failed, SFX Entertainment filed for bankruptcy. The company’s stock price has dropped considerably, and it is reported that it has defaulted on some of its loans. It is estimated that the company currently has around $300 million in debt.

Leaders within the electric dance music giant hope that a restructuring process that takes the company back to privately owned will remedy its current financial crisis.

Chapter 11 bankruptcy offers companies like SFX Enterprises the opportunity to keep their doors open while they make plans to address their debts, pay off their obligations, and find financial success in the future.

Bankruptcy does not always signify the end of a business. In fact, many companies use business bankruptcy as a tool to restructure their operations, reduce or eliminate their debts, and move toward a profitable abd successful future. SFX Entertainment will face a number of challenges as it works to overcome its financial hardships. However, if it is able to find a bankruptcy restructuring plan that works and that the bankruptcy court agrees to, SFX Entertainment may be able to revert back to a private company with a healthy better outlook.

Source: Forbes.com, “Electronic Music Industry Leader SFX Files For Bankruptcy,” Hugh McIntyre, Feb. 1, 2016

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