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SFX needs more time to finalise post-bankruptcy plan
By Chris Cooke | Published on Wednesday 2 November 2016
The bankruptcy of dance music firm SFX continues to rumble on, the plan still being to have a nice and nimble privately-owned EDM festivals business with minimal debts at the end of it all.
This week the company filed a new motion with the bankruptcy courts in the US seeking to extend “the exclusive period during which the company can file a chapter 11 plan and solicit acceptances thereof”. A final court hearing on those plans was scheduled for next week. But the firm is now proposing a 30 Dec deadline to have a final plan in place and a 28 Feb target date for getting those “acceptances thereof”. Basically they need more time than had originally been provided by the court.
Says SFX’s motion to the court: “The debtors have worked with and will continue to work with the DIP lenders, US trustee, the committee, and creditors in these chapter 11 cases on resolving open issues with plan confirmation. Allowing the exclusive periods to terminate before the debtors are able to confirm the plan would defeat the purpose of section 1121 of the Bankruptcy Code – to afford the debtors a meaningful and reasonable opportunity to propose and confirm a consensual plan of reorganisation”.
So there you go. The judge is yet to respond. As previously reported, a request by shareholders in the pre-bankruptcy SFX to participate in the restructuring talks was recently rejected by the courts. Meanwhile, it’s thought that post-bankruptcy the new SFX could return to court to fight its founder Robert FX Sillerman.
