New York,(CelebrityAccess) — Electronic music promoter SFX Entertainment announced that it has exited the bankruptcy process and will instead seek to negotiate with its creditors to reorganize.
In a news release announcing the move, the company said that exiting the bankruptcy process will allow the company latitude for ""more comprehensive negotiations with all of its constituents with the goal of developing a consensual plan of reorganization."
The supporting bondholder group will continue to work with SFX and the committee representing unsecured creditors, SFX said.
SXF originally said they intended to complete the chapter 11 process within six months but stated that there is now no timeline to complete reorganization negotiations, but hopes that it happens "expeditiously."
SFX is currently facing more than $300 million in debt when they went into default in February, however the company managed to divest several assets during the bankruptcy process, including digital marketing firm Fame House and ticketing service Flavorus, which Vivendi bought for a reported $4 million. – Staff Writers