SFX Has a New Plan, With a Former AEG Boss Lined Up to Implement it
Summary/Commentary:After filing for bankruptcy this pass February and liquidating its major assets FameHouse and Flavorus, SFX is steering the ship in a new direction that the corporation hopes will lead them out of bankruptcy and into profits.This article originally appeared on Complete Music Update
Don’t worry everybody, flagging EDM peddler SFX may have abandoned its original plan for getting out of bankruptcy, but it has a new plan to take its place. A new plan everybody! Let’s get those bleeps back into business.
And not only does it have a new plan, but SFX could be close to appointing a new boss too, who would be charged with the task of turning a profit from the dance music firm’s portfolio of festivals. And that potential new boss, according to the Wall Street Journal, is former AEG Live chief Randy Phillips.
As much previously reported, SFX entered chapter eleven bankruptcy protection back in February after a tumultuous year which saw founder and CEO Robert FX Sillerman desperately and unsuccessfully try to take his struggling company back into private ownership.
The firm has since sought to sell off various periphery assets to help fund a revival of the core festivals business. The main two deals to date being the sale of marketing agency FameHouse to Universal Music, and ticketing outfit Flavorus to the major’s parent company Vivendi.
Attempts to offload digital platform Beatport failed, though SFX insists that – since abandoning Beatport’s ambitious move into streaming to refocus on selling downloads – that division is actually doing alright again.
Rumours that it was key creditors who forced the original chapter eleven plan to be dropped seem to be credible given what the WSJ is reporting about the new proposed arrangement.
Under the new deal, former owners of SFX, including Sillerman, would get nothing, with primary creditors Allianz SE and Axar Capital Management LP taking control of the business. Junior creditors, including the founders of many of the festivals SFX acquired, would also be offered smaller stakes.
Read the full story by Chris Cooke at Complete Music Update