Court documents outlining a revised bankruptcy rescue plan make provision for claims against Robert FX Sillerman for alleged breaches of corporate responsibility
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Troubled EDM promoter SFX Entertainment is asking for a temporary pardon for chairman Robert FX Sillerman while it goes through the bankruptcy process
By IQ on 29 Feb 2016
SFX Entertainment has requested permission from a judge to halt a lawsuit against its chairman and former CEO, Robert FX Sillerman, while it focuses on its post-bankruptcy restructuring.
According to Dow Jones’s Daily Bankruptcy Review, the US bankruptcy code protects bankrupt companies from being sued during a bankruptcy case. However, that same protection doesn’t automatically extend tothose companies’ officers and directors.
Electronic dance music (EDM) promoter SFX calls the lawsuit, which alleges that Sillerman (pictured) misrepresented the company’s health to investors, “an enormous distraction” and says that it needs “all of [its] team focused” on the bankruptcy process, reports Billboard.
SFX went into administration on 1 February, entering into a ‘restructuring support agreement’ (RSA) which will wipe over US$300 million in debt from its books.
Earlier this month IQ revealed that many of the company’s largest creditors are SFX-owned promoters awaiting deferred purchase price payments, with the largest being Amsterdam Music Festival organiser Alda Events.