SFX Exits Chapter 11 Bankruptcy Unexpectedly [BREAKING NEWS]

The drama surrounding SFX took an unexpected turn with news that it has terminated its pre-Chapter 11 bankruptcy.  Unless there is an immediate buyer for a significant portion of SFX's assets, the unusual move would appear to put the future of the company at risk.

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Attorneys for troubled EDM concert and music company SFX [SFXE] announced that it was terminating its court supervised pre-Chapter 11 Restructuring Support Agreement effective immediately. 

A statement issued by the company said that the move "provides SFX the flexibility for more comprehensive negotiations with all of its constituents with the goal of developing a consensual Plan of Reorganization (“Plan”). It further claimed that SFX,  its bondholders and an Official Committee of Unsecured Creditors "continue to work cooperatively."

SFX filed for Chapter 11 Bankruptcy on February 1st of this year. Since then, the company has cut staff, cancelled festivals and sold off some assets including digital marketer Fame House to UMG.  An auction to sell EDM music service Beatport was floated and then terminated before completion.

"There is no set timeline for filing a (new) plan," according to the statement. But it seems unlikely that, even with recent deep cuts and assets sales alongside new lines of credit,  SFX can remain afloat for long, unless there is a suitor in the wings.  Live Nation and AEG have been mentioned as possible buyers in the past.

Say tuned for additional developments.

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