Robert Sillerman, the deposed chief executive of dance event conglomerate SFX, is trying to protect himself. In the midst of bankruptcy restructuring, Sillerman has asked the judge in that proceeding to pause an ongoing lawsuit against him while its chapter 11 process concludes. The news was first reported by Dow Jones.
The company called the lawsuit against Sillerman, essentially accusing the founder of inflating the company’s stock price through statements he made of its health, “an enormous distraction” and that it needs “all of [its] team focused” on the bankruptcy process.
An SEC filing made public due to that process provided detailed information on the company and showed it having a negative cash balance of $29.9 million as recently as January. Its largest debts include a $7 million settlement in a case brought against Sillerman over the creation of the company and deferred purchase price payments (essentially a payment plan) related to its festival acquisitions.
In a statement from early February, Sillerman characterized the bankruptcy restructuring as providing “the opportunity to achieve all that SFX can and will be.”