Totem Onelove speak out.
US-based SFX Entertainment, the company that owns Aussie dance festival Stereosonic, has filed for bankruptcy today, however its Australian subsidiary Totem Onelove has insisted the move will not have any impact outside of America.
SFX Entertainment, which also runs the hugely successful Tomorrowland festival, wiped a $300 million debt by filing for Chapter 11 under the United States Bankruptcy Code, "with the goal of restructuring its debt, improving its balance sheet and maximizing value for all of its stakeholders."
While many Australian punters were obviously concerned upon hearing the news, given the current state of the country's festival landscape, General Manager of Totem Damien Kease said, "This proceeding is taking place in the United States only; none of the international operating subsidiaries are included or impacted."
"Totem Onelove is not part of the SFX Chapter 11. Totem Onelove will continue to operate as normal. We are cash-flow positive, can and will pay business expenses and remain committed to planning for, preparing, and producing the festival and events we are known for. It is important to note that the SFX Chapter 11 proceeding taking place in the United States is not liquidation."
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Kease went on to say that SFX will not be going under and that the move is, in fact, good for the company moving forward.
"SFX is not going out of business and, in fact, has received a sizeable capital infusion to pay for ongoing operating expenses," Kease said.
"We at Totem Onelove see this as a positive turn of events for the SFX North American businesses that can now focus on the future."
As the New York Times have reported, SFX's Robert Sillerman will step down as Chief Executive and remain chairman of the company.
"This expression of confidence from our lenders is testimonial to the vibrancy and potential of our business," Sillerman said in a statement.
"Of course this was not where we thought we’d be, but with this restructuring we have the opportunity to achieve all that SFX can and will be."
Though it has been reported that SFX festivals including Tomorrowland and Stereosonic, as well as Electric Zoo and Mysteryland will go on as planned, the company will continue to operate privately.
The Music has requested further comment from Totem.
The Stereosonic 2015 shows came under intense scrutiny from authorities and governments after festival-goers Sylvia Choi and Stefan Woodward died of drug overdoses at the events in Sydney and Adelaide, respectively.