It's amazing to note that SFX Entertainment was once valued at $1 billion back in October 2013. Now it's struggling to stay alive.
In recent news, Nasdaq reports that SFX may file for bankruptcy due to an increasing amount of debt, which is currently at $312.6 million, to be paid off through 2019.
"In order to facilitate its reorganization, the company may consider utilizing the available protections under the federal bankruptcy laws," said SFX in a document that outlined the debt struggles.
To aid with the possible restructuring of SFX, the company has hired FTI Consulting Inc. to explore possible options for if they do in fact decide to file for bankruptcy.
This comes in the wake of cancelled contract negotiations with a Live Nation executive, Spotify backing out of a $10 million deal and TMWRK terminating their contract with SFX as well. They are now defaulting on loans and may not have enough capital to make it through 2016.
The future does not look bright for the event production company that puts on music festivals such as Tomorrowland, TomorrowWorld, Electric Zoo and others as well as being the parent company for the likes of Beatport and React.
We'll keep you updated as more news surfaces.