SFX Rejects Robert Sillerman's $15.8 Million Claim For Court Costs and Reimbursements
Robert Sillerman stepped down as CEO of SFX Entertainment in February, but the story between them continues. Sillerman has taken legal action against the company, seeking about $15.8 to cover SFX-related court costs and reimbursements for many of the acquisitions he made during his tenure. SFX has come back with a hard and legally-worded no.
Sillerman invested millions in SFX, buying numerous companies with a link to the electronic dance music scene, including event promoters Disco Donnie Presents and ID&T, as well as ticket service Flavorus, online music store Beatport, and more. When SFX went public in October of 2013, it was valued at more than $1 billion.
The good times didn't last long. SFX stocks plummeted, and by early 2016, the company filed for Chapter Eleven bankruptcy. That's when Sillerman stepped down, and now, he says SFX owes him for all court charges incurred while representing the company, as well as the purchase costs of acquired assets, including Chicago's React Presents.
SFX denies Sillerman's claims in a recent court filing, citing the claims “are contingent claims for reimbursement and subrogation arising out of guaranties executed by Sillerman for which certain of the Debtors are primarily liable and thus co-liable with Sillerman.” Because Sillerman owned about 40 percent of the company's shares at all legally relevant times, the company wants to hold Sillerman to his part of its outstanding debts.
The full court file can be read online.