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Reports say SFX Entertainment is on the verge of bankruptcy

Shares have dropped alarmingly in the last three months

American events company SFX Entertainment is close to bankruptcy, according to reports.

Responsible for events such as Tomorrowland and Electric Zoo, the Robert F.X Sillerman-owned company's shares have dropped by 61.65 per cent in the last quarter (three months), with a 45.64 per cent decrease in the last week alone.

Currently going through a sale process, a group of investors filed a lawsuit in September over being mislead by Sillerman (pictured), while news of another surfaced earlier this month because of "possible violations of federal securities laws" as the owner attempted a privatisation of SFX.

This is all on top of a major mess at its festival TomorrowWorld in the United States and labels being told they had to wait for royalty payments from Beatport, the online music retailer the company oversees.

[Via: American Trade Journal]