iHeartMedia officially files for chapter 11 bankruptcy

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iheartmedia

The largest radio broadcaster in the United States has officially filed for Chapter 11 bankruptcy. The filing comes after recent speculation that iHeartMedia had been preparing for bankruptcy, after shouldering a crippling and irresolvable figure of approximately $20 billion in debt — a sum that had proven problematic for the radio Goliath for a decade.

“iHeartMedia has created a highly successful operating business, generating year-over-year revenue growth in each of the last 18 consecutive quarters. We have transformed a traditional broadcast radio company into a true 21st century multi-platform, data-driven, digitally-focused media and entertainment powerhouse with unparalleled reach, products and services now available on more than 200 platforms, and the iHeartRadio master brand that ties together our almost 850 radio stations, our digital platform, our live events, and our 129 million social followers,” said iHeartMedia chairman and CEO, Bob Pittman in a press release published on the company’s press page on March 15.

“The agreement we announced today is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure. Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s No. 1 audio company,” Pittman added.

iHeartRadio currently owns 850 radio stations across the U.S., making it the most prominent radio branch in the nation.

H/T: Forbes

Pemberton Music Festival unexpectedly announces cancellation with no refund

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Pemberton Music Festival didn’t take long to establish itself as one of Canada’s biggest festivals. The British Columbian affair was known for its picturesque surrounding scenery and diverse, Coachella-esque lineup which featured a large roster of artists across the musical spectrum.

Despite its incredible look on paper, the event has had a notoriously tattered past, having to cancel two subsequent editions after its debut in 2008 and not returning until its three year run from 2014-2016. On May 18, Pemberton met its official demise. Not only will it not be taking place this July, but the festival has now filed bankruptcy, according to documents discovered by Global News.

Ticket holders were met with even worse news – no refunds will be given due to the event’s protection under bankruptcy law. If they do wish to see any of their funds returned, they’d have to file a proof of claim as a creditor through the courts. Even if they do so, generally approved proof of claims are paid out in installments over the period of bankruptcy.

Artists slated to headline this year included Major Lazer, Carnage, Zeds Dead, and more. Huka Entertainment, the primary promoters of the event, had the following statement:

“For the past four years, Huka Entertainment has worked to create a one-of-a-kind experience in the most beautiful place on earth. We are heartbroken to see the 2017 Pemberton Music Festival cancelled.

As a contract producer, Huka did not make the decision to cancel the festival. That decision was made by the Pemberton Music Festival, LP. We are extremely disappointed for our fans, artists and all of our partners who have supported the festival over the years.”

H/T: Global News

SFX arises from bankruptcy as new events company LiveStyle

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The proverbial “light at the end of the tunnel” is getting brighter by the day for the once ill-fated SFX. After a rough 2015 that led the behemoth events company to separate from ex-owner Rob Sillerman and filing for bankruptcy in February, things began turning around in spring when former AEG Live CEO Randy Phillips was brought on the team along with a crew of executives from ID&T and Q-Dance to restructure the debt.

By November, the $400 million restructuring plan had been approved from the courts. Now, the plan is coming into fruition: SFX will reemerge as a whole new company all together called LiveStyle, shedding its original name along with its ineffective business practices.

Phillips will be taking the company in a whole new direction, taking on a broader scope of the music industry other than EDM. The reason for this adjustment, he states, is ongoing controversy over drug-related issues in the electronic scene. Recent deaths and other terrifying stories circulated by the media have earned electronic music a bad reputation, which he states is “tough for a sponsor.”

He elaborates further on the name and general direction change: “Every time I said the name ‘SFX’ to someone, I got this negative reaction—people would make the sign of the cross.” By broadening LiveStyle’s reach, the ultimate goal is to increase gross earnings from $18 million to $50 million over the next three years.

Via: Thump

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SFX to emerge from 9-month bankruptcy

This post was originally published on this site

Since dance music company SFX filed for bankruptcy nine months ago, CEO and founder Robert Sillerman has stepped down from his role (to be replaced by Randy Philips), 50 employees have been laid off, and plans for reorganization have been drawn up.

The latest news in the ongoing SFX saga, however, is a positive one. The company’s most recent reorganization plan, which will cut it’s massive debt by $400 million, was just approved by a judge. The decision should pull the company out of its 9-month long bankruptcy.

Via: The Wallstreet Journal

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