SFX Entertainment has filed for chapter 11 bankruptcy.

The move will wipe $300m (£210m) in debt from the electronic music promoter’s balance sheet and take the company private.

Under the terms of the deal, SFX will swap debt for equity with bondholders giving them $115m (£80.6m) to continue running its operations during the ensuring bankruptcy case.

A new chief executive will also be ushered in to replace current CEO and chairman Robert F.X. Sillerman.

The bankruptcy filling comes weeks after the company failed to make a $3m (£2.1m) interest payment to bondholders.

SFX say that they expect to complete restructuring and exit chapter 11 within six months.

The New York-based company’s assets include EDM festivals Electric Zoo and TomorrowWorld as well as Beatport, React Presents, Made Event and i-Motion.

The move comes after a number of failed attempts by Sillerman to take the company private.