Alda Events seizes commanding shares of SFX Europe, ID&T and Sensation Brazil
It is quite extraordinary how quickly the high stakes game of entertainment conglomerates can turn and in this particular case it displays a certain irony. In its prime SFX Entertainment was buying companies left right and centre, including attempting to purchase the one that ultimately used its demise to turn the tables.
Very few could have anticipated that SFX would eventually lose the brand to one of the companies it had originally wanted to purchase. As a result of debts owed by SFX, Dutch promotional company Alda Events has now seized dominant shares of SFX’s assets, including SFX Europe, Sensation Brazil and ID&T. ID&T hosts highly successful festivals including Sensation, Tomorrowland, Mysteryland and Amsterdam Music Festival which had recently been extended to a 5-day event.
The irony in this particular case lies in the bankruptcy court documents uncovered by Dutch magazine Quote which reveal that SFX had originally agreed to purchase 50% of Alda Events from its owners, Allan Hardberg and David Lewis, for $23.4 million. The deal fell apart after SFX breached their contract due to nonpayments after which the owners of Alda exercised a put option at a previously agreed-upon amount of shares.
SFX tried to propose other alternatives but Alda’s owners have reportedly moved forward and seized commanding shares of SFX Europe, ID&T, and Sensation Brazil – as well as the shares of Alda Events already transferred to SFX. They also repossessed business accounts that SFX had opened with various banks.
As a way of mitigating the situation, SFX has proposed a settlement to the bankruptcy court. The true effect of this monumental change will become more apparent as more official documents emerge from the proceedings of the restructuring process.