React Presents’ Spring Awakening Music Festival
Only last week we reported that SFX Entertainment filed for Chapter 11 bankruptcy in a final attempt of restructuring and salvaging whatever possible from their dire financial situation by erasing their $300 million of outstanding debt.
We have now learned through an IQ Mag report that 11 of SFX’s largest “non-insider” creditors – i.e. those that aren’t directly associated with SFX founder and owner Rober FX Sillerman – are the direct owners of the many companies that SFX added to their portfolio since 2012. According to the report, SFX’s assets are listed at $661.614m with debts of $490.236m. Sillerman and entities controlled by him own 37.8 per cent of the companyâs common stock at the time of writing.
From the report, it can be learned that SFX’s largest American creditors are Made Event, founders of Electric Zoo in New York, Electric Zoo Mexico City and Electric Zoo Beach Tokyo, who are still waiting payment of around $10 million. React Presents in Chicago, responsible for a vast percentage of EDM-related events in the entire Midwest including Spring Awakening Music Festival, Summer Set Music & Camping, the Mid and Concord Hall, is owed $5.8 million.
Elsewhere, reports highlight that the Netherland’s Alda Events (at the top of the creditor’s list) is out $23.6 million while Australiaâs Totem OneLove Group, promoters for Stereosonic festival, are owed $10.7m.
Three co-founders of Hoeksema Holdings (Paylogic) are also owed three separate amounts each ranging from half a million to $2.5m. Several trade creditors that are still owed money include private air-charter firm VistaJet ($1m), Epic Tents ($442,650), PRS for Music ($327,680), NYC-based app-builder Postlight ($315,000), Front Gate Ticketing ($301,400) and an event medical services firm CrowdRX ($269,600).
What this list essentially is, are the various entities and individuals still awaiting deferred payments by SFX. Due to the nature of the Restructuring Support Agreement, it is safe to assume that creditors will continue to have a strong vested interest and involvement in ensuring SFX’s restructuring is successful.
Source: IQ Mag
