SFX Entertainment has gained $20 million in new financing.
Sillerman’s electronic dance music company SFX ended last week on a high. According to details now surfacing, the company is securing substantial financing following a tough period of falling revenues. SFX will file a Form 8-K, ‘for its working and general corporate purposes’.
In a bid to get the company back on track, Sillerman hired Moelis & Company in December last year to look into ways in which the company could reduce its debt. Since that point, the company has struggled to stay afloat, despite several attempts to combat its financial whirlwind that it is experiencing. SFX failed to purchased $15 million in stock, resulting in a delinquent content agreement with Spotify.
On top of all of this, the management company TMWRK has also paid $3.6m to buy itself out.
If things couldn’t get any worse, rumours are still circulating that the company will continue with plans to file for bankruptcy. GoldenTreeAsset Management reportedly assigned SFX’s revolving credit facility to Catalyst Fund Limited Partnership V on December 31st. However, reports are stating that SFX has hired FTI Consulting as a chief restructuring officer.
People are obviously still skeptical about the future of SFX given its troubled financial state. Optimistically, this new $20 million offers a way for the company to regain some sort of stability.
Sucker investment. Open toilet lid – insert cash.