WILMINGTON, Del. (Reuters) – Collectors of American media entrepreneur Robert F.X. Sillerman are looking for to power the onetime billionaire out of business to try to accumulate on a $7.36 million judgment in opposition to him, in response to court docket paperwork.
Two Chicago-based live performance promoters on Wednesday filed an involuntary Chapter 7 chapter petition in opposition to Sillerman in U.S. Chapter Court docket in Manhattan.
They’re looking for to gather a judgment they gained final month in opposition to Sillerman over a promissory observe he assured on behalf of SFX Leisure Inc.
Sillerman based the corporate in 2012 to advertise digital dance music festivals, and in 2014 acquired React Presents Inc and Clubtix Inc from Jeffery Callahan and Lucas King. A part of the cost for the deal was within the type of a $10 million promissory observe.
SFX Leisure acquired festivals corresponding to TomorrowWorld however had bother bringing them collectively in a single company household and filed for chapter in February 2016. A month later, King and Callahan and the their two corporations sued Sillerman in Chicago federal court docket to gather on the promissory observe.
The collectors are represented by Michael Edelman of Vedder Value in New York, who didn’t instantly reply to a request for remark.
Sillerman couldn’t be reached for remark.
Forbes Journal in 2008 included Sillerman on its checklist of “poor billionaires,” or those that didn’t crack the Forbes 400 checklist of richest Individuals. He appeared on the checklist in 2005.
Sillerman constructed his fortune over many years of well-timed offers consolidating the leisure trade, involving radio stations, live performance promoters and even Elvis Presley’s Graceland mansion.
Sillerman can reply to the collectors’ involuntary chapter petition by looking for to have the case dismissed or changing the submitting to a voluntary chapter, which might give him higher management over the case.
The involuntary chapter is the most recent authorized headache going through Sillerman.
In September, ESFX Holdings LLC requested a New York state choose to situation an order allowing the compelled sale of a property owned by Sillerman and his spouse on the Higher East Aspect of Manhattan to fulfill a $14.6 million judgment.
ESFX obtained the judgment after a default on a promissory observe that had been assured by Sillerman.
Sillerman has requested the court docket to dismiss the case and mentioned the submitting was an try to stress him by threatening him and his spouse with the lack of their house.
A listening to is scheduled for March within the case.
Reporting by Tom Hals in Wilmington, Delaware; Enhancing by Andrew Hay
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