SFX GIVEN $80 MILLION IN BANKRUPTCY LOAN
At the start of this month, SFX Entertainment filed for chapter 11 bankruptcy in what seemed like the final nail in the coffin, but they’ve now been granted an $80 million loan – quite a tidy sum indeed. SFX has also entered into a Restructuring Support Agreement which swaps debt for equity with bondholders erasing $300 million worth of outstanding debt.
The $80 million loan, which needed approval from a bankruptcy judge, stands as a part of a $115 million total loan provided by junior bondholders. The money will be used to pay off senior leaders primarily, though $23 million will remain in the coffers set aside for operational expenses.
This new development will have no impact on SFX founder and CEO Robert Sillerman’s decision to resign within sixty days as announced earlier this week. Newly appointed chief restructuring officer Michael Katzenstein will take over as interim CEO in the meantime.