Robert Sillerman will remain the company's chairman as the search begins for a new Chief Executive to turn around the EDM powerhouse.
EDM promoter SFX announced Monday is has filed for Chapter 11 reorganization in order to restructure is debt. Robert Sillerman will be replaced as CEO but will remain chairman of the company.
The company says it will to eliminate "more than $300 million" of its $490 million of debt in part by turning the majority of bondholder debt into equity. It also expects the restructuring will provide "significant working capital" that should help the incoming CEO revive the company. Michael Katzenstein, of FTI Consulting, Inc. is serving as SFX's Chief Restructuring Officer. Greenberg Traurig, LLP is its legal advisor. Moelis & Company is its investment banker.