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By Dave Brooks of live music trade Amplify
The promoters behind Chicago EDM powerhouse React Presents are trying to push former SFX CEO Robert Sillerman into involuntary bankruptcy to collect a $7.4 million judgement.
Lawyers for Lucas King and Jeffrey Callahan are asking a federal bankruptcy judge to push Sillerman into Chapter 7 bankruptcy over an unpaid promissory note he guaranteed for the purchase of React Presents. Last month, King and Callahan won a judgment against Sillerman over the debt they are now seeking to collect.
Sillerman bought React Presents in 2014, part of a global buy up of EDM promoters that included Disco Donnie Presents in Florida and ID&T in Holland. As part of the buyout, Sillerman issued King and Callahan a $10 million promissory note for React Presents and ClubTix Inc
In February 2016, Sillerman and SFX filed for bankruptcy and the company was eventually taken over by its senior creditors, renamed LiveStyle and is now helmed by former AEG executive Randy Phillips and HARD founder Gary Richards. A month after Sillerman filed for bankruptcy, King and Callahan filed a lawsuit against Sillerman to collect on the promissory note.
Sillerman also faces a similar action from ESFX Holdings, a shell company not officially linked to SFX, which won a $14.6 million judgement against Sillerman and is now trying to force the sale on a property owned by Sillerman and his wife on the Upper East Side of Manhattan.
from hypebot http://ift.tt/2F51WjE
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