NEW YORK (AP) — The company behind the Electric Zoo and Tomorrowland music festivals has filed for Chapter 11 bankruptcy protection.
New York-based SFX Entertainment Inc. says, however, that its festivals and events will continue as planned. Filing for Chapter 11 bankruptcy protection allows companies to reorganize their debt while they keep their businesses operating.
As part of its agreement with bondholders, SFX will eliminate more than $300 million in debt from its balance sheets and be turned into a private company.
Shares in SFX had fallen steadily since they debuted on the Nasdaq market at $13 apiece in 2013.
The company promotes electronic dance music events around the world, including Mysteryland and Life in Color. It also operates Beatport, an online music store for electronic dance songs.
In the past year, SFX's chairman and CEO Robert Sillerman tried unsuccessfully to buy the company and take it private. Sillerman said Monday that he will remain as chairman of SFX, but said the search is on for a new CEO.