WILMINGTOn, DE (CelebrityAccess) — The judge in a Delaware bankruptcy court has signed off on a bondholder plan that will see SFX put on a tight budget, but provides the struggling EDM company with an infusion of working capital.
According to Bloomberg News, U.S. Bankruptcy Judge Mary Walrath in Wilmington, Delaware, gave interim approval to the debtor-in-possession loan, giving SFX access to $80 million of the $115 million in financing offered by bondholders.
An unnamed source at SFX told Billboard that $23 million of the infusion of capital will be used to pay expenses, with the remainder used to pay off senior lenders, including Catalyst Fund, which loaned SFX $20 million last month.
The source also told Billboard that the company has started working with an executive search firm to seek a replacement for outgoing chairman Robert Sillerman. – Staff Writers