SFX Entertainment's troubles really don't seem to be going away. Recently, we have reported on how founder and 39% shareholder Robert Sillerman offered a last ditch deal to take the company private; then how just before that the company was sued by its investors as it stock plummeted; followed by SFX subsidiary Beatport having to apologize for delayed payments to labels for music purchases on their online marketplace; and—auspiciously, before all of the above—why EDM might not be ready for Wall Street after all. Long story short: things haven't been so pretty.Now, as of Monday, Reuters reports that SFX is exploring debt restructuring, according to a spokesman for Sillerman. Currently, the company owes about $300 million, with a market capitalization at only $30 million and debt that trades at distressed levels."It is correct that the company hired Moelis to examine broadly its position," the spokesman told Reuters. "That principally includes sales of non-strategic assets as well as examining the capital structure of the company." Moelis, an independent investment bank, declined to comment.Mid-November, Sillerman withdrew his latest bid to take the company private. Before that, in September, Sillerman agreed to invest $30 million in the company, but by early November had yet to deliver the full amount. SFX has demanded payment of the balance, and is "evaluating all legal remedies available to enforce its rights."Read more at Reuters.Follow Alexander on Twitter.
Advertisement