SFX Entertainment Inc. has expanded its strategic review to include debt restructuring options, but one hedge fund investor who follows the music festival producer expects a messy process, reports Lisa Allen, a senior reporter for The Deal. ‘I would be unbelievably surprised if they can pull off something that is orchestrated as opposed to chaotic,’ said David Tawil, co-founder and portfolio manager at distress-focused hedge fund Maglan Capital LP, adding that he fears a free-fall Chapter 11 bankruptcy is the likeliest outcome. SFX spokesman Edmund Tagliaferri confirmed via e-mail that financial adviser Moelis & Co. LLC’s mandate is ‘to examine broadly [SFX’s] position. That principally includes sales of nonstrategic assets as well as examining the capital structure of the company.’ He declined to comment further, and a Moelis spokesman also declined comment.
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