SFX Entertainment Files for Chapter 11 Bankrpuptcy; Receives $115M Financing

SFX Entertainment, Inc.

today announced that it has reached an agreement with an ad hoc group of bondholders ("ad hoc group") to significantly restructure the Company's outstanding debt. SFX and the ad hoc group have entered into a Restructuring Support Agreement ("RSA") that will eliminate more than $300 million in debt from its balance sheet, provide significant working capital and convert the majority of the bondholder group debt into equity in a newly strengthened private company. In order to facilitate the restructuring, SFX Entertainment, Inc. has today filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company's international operating subsidiaries are not included and will not be impacted by the filing. Moreover, the Company will continue to prepare for, plan and produce all of its festivals and events around the world and in the United States without interruption. Robert F.X. Sillerman, Chairman and CEO said, "This expression of confidence from our lenders is testimonial to the vibrancy and potential of our business, and the dedication and professionalism of