SFX Entertainment’s Fifth Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on November 15, 2016.
According BankruptcyData’s Plan summary, “The Plan proposes the issuance of three classes of securities: New Series A Preferred Stock, New Series B Preferred Stock and New Common Stock. The Plan also proposes the issuance of three series of warrants: the Series A Warrants, the Series B Warrants, and the Series C Warrants….Interests in SFXE will not receive or retain any distribution or other property on account of such Interests under the Plan. All Interests in SFXE and all stock certificates, instruments, and other documents evidencing such Interests in SFXE will be cancelled as of the Effective Date.”
In addition, “The Valuation Analysis estimates going concern enterprise value of the Reorganized Debtors, would be in a range between $115 million and $160 million, and the mid-point of this range is $137.5 million. The Debtors estimate that common equity is ‘out of the money’ by over $460 million and up to $500 million.”
This live entertainment events’ producer filed for Chapter 11 protection on February 1, 2016, listing $710 million in pre-petition assets.
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