NEW YORK (CelebrityAccess) — As a part of the company's bankruptcy filing, SFX has revealed that the company's founding CEO Robert Sillerman will resign from his post within the next 60 days.
However, SFX attorney Nancy Mitchell told a U.S. Bankruptcy Court that Sillerman will remain as chairman of the company's board of directors, according to a report by Reuters.
Michael Katzenstein, of FTI Consulting, Inc. is serving as the Company’s Chief Restructuring Officer, Greenberg Traurig, LLP is serving as legal advisor.
Robert F.X. Sillerman, Chairman and CEO said, “This expression of confidence from our lenders is testimonial to the vibrancy and potential of our business, and the dedication and professionalism of the over 600 people who make up SFX. Of course this was not where we thought we’d be but with this restructuring we have the opportunity to achieve all that SFX can and will be. I’m looking forward to continuing to be part of the new SFX as Chairman. We will immediately commence a search for a new CEO to lead us as we continue to set the trend in the exploding culture that is electronic music.”
Sillerman's resignation was part of the company's debt-cutting deal with bondholders, who agreed to convert $300 million in debt into an ownership stake in the company.
The ad hoc group of bondholders also provided 115 million in DIP (debtor-in-possession) financing. This financing, which is still subject to court approval, will be used to pay ongoing, normal course of business, obligations including artists, venues, sponsors, partners, vendors and suppliers.
All scheduled and planned events and festivals will take place without interruption, the company said. – Staff Writers