SFX Inching Closer To Bankruptcy

Chapter 11 On The Horizon

SFX ENTERTAINMENT, which has been facing financial woes for some time, said YESTERDAY (1/7) that it may file for bankruptcy.

THE WALL STREET JOURNAL reports, "The company, which puts on electronic-music concerts like the ELECTRIC ZOO FESTIVAL in NEW YORK, said in financial documents that it received a waiver of defaults on $30 million in debt through JAN. 28th. In connection with that waiver, the company hired turnaround firm FTI CONSULTING INC. to help it examine restructuring options that may be executed in bankruptcy, according to the documents."

In an SEC filing, SFX wrote, “In order to facilitate its reorganization, the company may consider utilizing the available protections under the federal bankruptcy laws.”

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