Many Louisiana readers may be familiar with one-time billionaire Robert F.X. Sillerman. As an entrepreneur, Sillerman owned various television and radio stations in the 1970s and 1980s and later became a concert and stage promoter. Sillerman founded SFX Entertainment Inc. in 2012 and is currently engaged in a legal battle with creditors who are reportedly trying to force him into Chapter 7 bankruptcy.
Chapter 7 bankruptcy generally requires complete liquidation of all assets in order to satisfy debts. The two creditors in question are concert promoters to whom Sillerman reportedly issued a $10 million promissory note that he guaranteed on behalf of SFX Entertainment Inc. The creditors apparently won a legal judgment in excess of $7 million against Sillerman regarding the note.
In an effort collect payment, the creditors filed an involuntary Chapter 7 bankruptcy petition in a New York court. In situations like this, the person against whom the petition has been filed has a couple of choices. He or she can seek to convert the petition to a voluntary bankruptcy petition, or he or she can request a dismissal of the involuntary petition.
A hearing in the Sillerman case is slated to take place in March. Although all those facing financial crises in Louisiana may not be billionaires, when situations occur that prompt the need for immediate debt relief, it can be quite stressful. One way to help alleviate such stress is to seek guidance from an experienced attorney who can explain the Chapter 7 bankruptcy process, as well as any other options that might be available.
Source: Reuters, “Creditors seek bankruptcy for U.S. media entrepreneur Sillerman,” Tom Hals, Dec. 27, 2017