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Bankruptcy May Be Your Option

Music festival promoter files for bankruptcy

There are many people in Oklahoma and across the country who have business-related dreams and pour their lives into achieving these goals. Despite their efforts, they are often unable to overcome obstacles that they ultimately have no control over, such as the economy. One company located out-of-state, SFX Entertainment Inc. (SFX), has recently sought Chapter 11 bankruptcy protection after several factors reportedly prevented it from making a profit.

The company promotes electronic music festivals. Founded in 2012, SFX has reportedly sold over three million tickets to over 1,000 festivals and other worldwide events. Despite this success, the company has been unable to make a profit. Court papers indicate that the company's struggles result from the strengthening of U.S currency as well as the costs of security, among other issues.

SFX filed for bankruptcy protection after reaching a deal with bondholders. As part of the deal, ownership will switch to creditors who are owed $300 million. Additionally, the company will receive a loan of $115 million to pay various workers and other costs as well as refinance millions in loans. A representative for the company claims that SFX will continue to promote events, including festivals that last for multiple days. The Chapter 11 proceeding must be based upon a reorganization plan that is approved by the Bankruptcy Court.

Various businesses in Oklahoma have struggled with unmanageable debt, often due to unforeseen circumstances. For many in this situation, the best option may be to file for bankruptcy relief, just as SFX has done. An attorney with experience with such laws can help those struggling with debt better understand their options for relief.  

Source: Reuters, "Electronic music promoter SFX Entertainment files for bankruptcy", Tom Hals, Feb. 1, 2016

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