SFX Entertainment, the company responsible for major EDM festivals such as Tomorrowland have filed for bankruptcy amidst $300 million in debt.

SFX Entertainment are responsible for the massive Tomorrowland and Tomorrowworld festivals and also own a selection of important EDM companies including Beatport – the large, digital music store for electronic music. The electronic music event production company have filed for chapter 11 bankruptcy to wipe away $300 million of debt and take the company private.

The deal offers bondholders equity in exchange for the debt and provides $115 million of bankruptcy financing so that the company can continue operations throughout the process. The deal will also see a new CEO for SFX Entertainment, replacing current chief executive and Chairman Robert Sillerman.

The company suffered troubles last October when Tomorrowworld was devastated by weather and the company came under fire for their lackluster treatment of attendees. Earlier this month it was then reported that SFX were “considering filing for bankruptcy”. SFX CEO Sillerman reportedly attempted a go-private transaction offering $4.75-a-share and then $5.25 a share, however it was challenged by the Delaware Court of Chancery and ultimately fell through.

It’s been a rocky month for the company overall as weeks ago they missed out on a $3 million interest payment to bondholders who then declared the company in default on the $5.8 million balance of the bond. SFX Entertainment say that they hope to complete restructuring and exit chapter 11 bankruptcy within six months.

SFX Entertainment grew out of SFX Broadcasting, founded by Sillerman in the 1970s. When he sold the broadcasting company in 1998, which owned 71 radio stations by then, he held on to their event promotion business and created what became SFX Entertainment. He later sold the business for $4.4 billion in stock and debt assumption before reviving it with a focus on electronic music in 2011.