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SFX creditor objects to Flavorus sale

By | Published on Wednesday 25 May 2016

SFX Entertainment

Well, dance music firm SFX’s continued attempts to sell off key assets to bring in some much needed cash as it goes through the bankruptcy process are still not going particularly well. The auction of its Beatport business was suspended and the digital music service stripped back to just its download store earlier this month. And now a creditor is attempting to block the sale of ticketing outfit Flavorus.

Acquired back in 2014, Flavorus was used to sell tickets to key SFX events. The sale of the company was announced last month, but now one of SFX’s creditors, cloud computing firm Salesforce, has objected to the sale, asking for a court order to ensure that it will receive monies owed if and when a sale goes through.

Salesforce is owed over $200,000 and is also demanding that a further $125,000 be paid out of any loot secured by a Flavorus sale to cover what it’s due on the rest of its contract, which is due to run until February next year, reports IQ. If Salesforce’s request is granted, it could pose a problem for SFX as it seeks to sell off other assets, as the Salesforce debt is far from the largest outstanding on the dance music company’s books, and other creditors could make similar moves, especially where debts are linked to specific SFX businesses.