SFX Continues To Move Against Ex-CEO Bob Sillerman
As Robert Sillerman attempts to claim millions from his former company in an attempt to cover his legal costs, as well as obtain some form of reimbursement for purchases made while at SFX, the company’s lawyers are working hard to keep him in check.
Guest Post by Dave Brooks on Amplify
SFX is working to block millions of dollars in claims against the company by founder and lame duck chairman Robert Sillerman.
Yesterday, a lawyer working for SFX filed an objection to $15.8 million in claims filed by Sillerman to cover his legal costs and reimburse himself for several acquisitions including the purchase of Chicago EDM promoter React Presents. SFX Lawyers are also opposing several requests by Sillerman to indemnify himself from future lawsuits.
Sillerman “seeks reimbursement for potential losses Sillerman might incur as a result of his guaranties of the primary obligations of certain of the Debtors,” attorney Colin Robertson wrote in a court filing.
Sillerman wants $531,912 to pay the Paul Hastings law firm for “its defense of certain litigation in which both Sillerman and SFX Entertainment, Inc. were defendants.”
He also wants to “assert rights of subrogation and indemnification in the amount of up to $7,826,353” for a promissory note written to React Presents, Clubtix and React Founders Lucas King and Jeff Callahan.
“As of April 30, 2016, the alleged amount due on the note was approximately $6 million, with interest claimed to be accruing at over $1,600 per day,” Robertson wrote. “The claims fail to allege that Sillerman has paid any amounts under the React Guaranty; therefore, the claims are unliquidated and contingent.”
Sillerman is also asking for $7.5 million arising from a deal between Spotify and Beatport — SFX lawyers allege there is no evidence Sillerman paid anything to Spotify, and are also asking that requests for indemnification be denied.
“The Sillerman Guaranty Claims arise under Sillerman’s guaranties and are contingent claims unless and until he pays the underlying debts to the beneficiaries of his guaranties,” Robertson wrote. “Because he has not even alleged he has paid any amounts to the beneficiaries of his guaranties, the Sillerman Guaranty Claims are contingent.”
Dave Brooks has over 15 years experience as a writer, including eight years as the Managing Editor of Venues Today. He started Amplify in 2014 to give the industry its own voice and turn up the volume on live entertainment.