SFX Entertainment filed for Chapter 11 bankruptcy.
That’s part of a deal to eliminate $300M in debt from its books and take the company private.
Company CEO and Chairman Robert F.X. Sillerman founded radio group SFX Broadcasting in the ‘70s.
When he sold it in 1998, he kept the event promotion part of the business and re-named it SFX Entertainment in 1998 which he later sold to Clear Channel, reports the Wall Street Journal.
Sillerman reignited the event company in 2011, focusing on electronic music festivals and took that public in 2013.
The debt-for-equity swap with bondholders provides $115M in financing so the company can continue to operate while the case winds its way through bankruptcy court.
Sillerman will also be replaced, and the company will become private, according to the account.