SFX considering legal action against Sillerman
Court documents outlining a revised bankruptcy rescue plan make provision for claims against Robert FX Sillerman for alleged breaches of corporate responsibility
News By | 28 July 2016
The new management of SFX Entertainment – believed to be led by two senior creditors, investment firms Allianz and Axar Capital Management – has signalled its intention to bring charges against the company’s former directors, including ex-CEO Robert FX Sillerman.
In new documents, filed in the Delaware bankruptcy court yesterday, outlining an alternative post-bankruptcy plan for the dance music promotion group following the axing last month of its previous restructuring support agreement (RSA), SFX (‘the debtors’) says it may seek damages for “breaches of fiduciary duty by former directors and officers of the debtors, and avoidance actions, such as fraudulent transfer claims under federal and state law”.
The alleged violations of fiduciary duty – defined in Delaware as the duty of loyalty by people controlling a company to…
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