The downfall of SFX Entertainment continues, and even after former CEO Robert Sillerman has exited, it seems like their problems are still not over.
Sillerman is requesting that SFX pay him roughly $15.8 million for reimbursements of legal costs he acquired and several acquisitions he made for SFX, including the purchase of React Presents, a Chicago EDM promoter. The company, however, is rejecting both requests.
In a court filing, attorney Colin Robertson explains that the former CEO “seeks reimbursement for potential losses Sillerman might incur as a result of his guaranties of the primary obligations of certain of the Debtors.”
Sillerman had millions invested in SFX from buying numerous companies like ID&T and Beatport, but stock prices for the asset have plummeted and the company ultimately filed for Chapter Eleven bankruptcy in early 2016 when Sillerman left. Since SFX is not accepting his requests, there’s a high probability that there will be even more legal battles to come in the near future.