The SFX deadline has arrived and investors who lost money with the company are flooding the company’s web site, hitting reload every few minutes to see if there is any news about a possible buyer.
Keep in mind, this is a two-week extension from the original deadline and the company’s future seems really shakey after a go-private attempt by CEO Robert Sillerman failed last month. That caused the company’s stock to plummet and prompted a $30-million loan from Sillerman with a sky-high interest rate, along with an additional $60 million in loans and refinancing.
The company is now entertaining offers to sell some or part of its portfolio of festivals and music companies, including TomorrowWorld, Rock in Rio and Beatport. Sillerman certainly isn’t in an enviable position. He’s greatly undervalued his company’s assets and destroyed his credibility. Anyone walking into that meeting better bring an army of lawyers and a really big calculator.