Stereosonic Canceled

The reason appears to have less to do with the fatalities as it does with finances. According to legal documents posted by The Music of Australia, Stereosonic owner SFX must get spending approval from the U.S. Bankruptcy Court in Delaware as part of its Chapter 11 proceedings, “pursuant to an Artist Carve Out agreement negotiated for its debtors.”

The documents reportedly show that no funding has been arranged for Stereosonic nor artist payments approved, though apparently it has been for Beatport, Mysteryland and TomorrowWorld.

An unnamed agent told The Music it’s believed many agents are refusing to sign artist contracts for less than 75 percent upfront deposit guarantee – and, in some cases, 100 percent.

While the loss of Stereosonic would be a blow to Australia’s festival season, The Music reports that founders Richie McNeil and Frank Cotela, who both left with non-competes in 2013, have completed their agreements and and may now be able to return to the market.

Meanwhile, there will be about 50 layoffs over the next 90 days at SFX’s New York headquarters as the company plans to get out of bankruptcy this year.