SFX granted an $80 million bankruptcy loan
After filing for chapter 11 bankruptcy on February 1, ailing electronic music conglomerate SFX Entertainment has been given access to an $80 million loan. SFX entered into a Restructuring Support Agreement which erased $300 million worth of outstanding debt by swapping the debt for equity with bondholders.
A judge granted the company permission to use the loan as part of $115 million total provided by junior bondholders who have worked with the company on the terms of the restructuring agreement. The loan will be primarily used to pay off senior lenders, though $23 million will be reserved for operational expenses.
SFX founder and CEO Robert Sillerman will resign within sixty days. His post will be filled on an interim basis by the company’s chief restructuring officer Michael Katzenstein. Though the teams behind Belgian megafestival Tomorrowland and Tomorrowland Brasil have stated that the bankruptcy will not affect their operations, the future of TomorrowWorld is not guaranteed.
H/T: Music Week