After running the SFX party boat straight into the ground, former CEO Robert Sillerman is still trying to come out on top of the debacle. According to attorney Colin Robertson, Sillerman “seeks reimbursement for potential losses Sillerman might incur as a result of his guaranties of the primary obligations of certain of the Debtors.”
However, SFX is firing back. The company has filed an objection to Sillerman’s claim of $15.8 million, which he states are to cover legal costs and personal reimbursements for several acquisitions, including React Presents. Additionally, SFX Lawyers have also opposed Sillerman’s requests for indemnification from future lawsuits.
Here is a brief rundown for some of Sillerman’s requests:
$531,912 for payment to the Paul Hastings law firm for “defense of certain litigation in which both Sillerman and SFX Entertainment, Inc. were defendants.”
$7.5 million from a deal between Spotify and Beatport.
Up to $7,826,353 in rights of subrogation and indemnification for a promissory note written to Clubtix and React Presents Founders Lucas King and Jeff Callahan. However, the details of that note aren’t in Sillerman’s favor.
“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. The claims fail to allege that Sillerman has paid any amounts under the React Guaranty; therefore, the claims are unliquidated and contingent.”
Still, it the majority of Sillerman’s claims don’t look to be panning out well. SFX lawyers are asking to deny his requests for indemnification and claim there is no evidence Sillerman ever paid anything to Spotify. For the most part, it seems Sillerman is attempting his best to save himself from a souring situation.
H/T Amplify