Troubled EDM promoter SFX Entertainment is asking for a temporary pardon for chairman Robert FX Sillerman while it goes through the bankruptcy process
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Guevoura Fund, which is suing Robert Sillerman and SFX for allegedly misrepresenting the value of the company, questions if the ex-CEO should still be taking a salary
By Jon Chapple on 16 Jun 2016
Guevoura Fund Ltd – a hedge fund currently suing Robert FX Sillerman over claims that the former SFX Entertainment CEO misrepresented the company’s health to investors in his last bid to take now-bankrupt SFX private – has asked that Sillerman be stripped of his SFX salary and health insurance, arguing that neither were mentioned in the company’s February bankruptcy proceedings.
Documents filed yesterday in the Delaware bankruptcy court reveal that Sillerman (pictured), who now sits as chairman of the board following his resignation as chief executive on 31 March, currently receives US$675 per week as a salary and is covered under a private health-insurance plan.
Claimant Guevoura says “it is unclear […] why Mr Sillerman should receive anything in exchange for his resignation, especially because none of these benefits were contemplated in the RSA [restructuring support agreement] or DIP [debtor-in-possession] credit agreement”.
“It is unclear why Mr Sillerman should receive anything in exchange for his resignation”
It has also asked for clarification on “what Mr Sillerman’s duties as chairman will be going forward in view of the serious questions concerning his pre-petition conduct”.
SFX, the parent company of festival ID&T (Tomorrowland, Mysteryland), Alda Events (Amsterdam Music Festival), Made Event (Electric Zoo) and Stereosonic promoter Totem OneLove (also in administration), declared bankruptcy on 1 February with debts of nearly US$5 million.
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