NEW YORK (VIP NEWS) — SFX Entertainment has secured $20 million in new financing, for "itself and certain of its operating subsidiaries".
Limited additional details are available ahead of the company filing a Form 8-K, but the capital, "for its working and general corporate purposes", follows SFX`s attempts to stay afloat amid falling revenues in the new year.
Back in December, the EDM promoter hired investment bank Moelis & Co to look at ways of cutting the company`s debt, including potential sales of non-strategic assets.
So far this year, SFX has defaulted on its content agreement with Spotify, after CEO Robert FX Sillerman failed to purchase $15 million in preferred stock by October 17, and management company TMWRK, home to Diplo, has also paid $3.6m to buy itself out of the SFX brand.
Rumors continue that the company is considering filing for bankruptcy. GoldenTreeAsset Management assigned the its revolving credit facility to Catalyst Fund Limited Partnership V on December 31, while a filing with the Securities and Exchange Commission states that SFX has hired FTI Consulting as a chief restructuring officer.