NEW YORK (Hypebot) – The bankruptcy judge overseeing the Chapter 11 bankruptcy restructuring of SFX Entertainment has agreed to let the company draw on $80 million of the $115 million loan which bond holders have extended to the struggling company.
Maybe those Beatport checks will keep flowing to artists and labels for a little while longer.
Permission for SFX to access $80 million of a $115 million credit line was granted yesterday by Judge Mary Walrath of the U.S. Bankruptcy Court in Wilmington, Delaware according to the Wall Street Journal.
The court also learned that controversial founder Robert Sillerman will resign within 60 days as CEO of SFX Entertainment, but remain Chairman of the board. The resignation was a condition of investors and bondholders who agreed to write off more than $300 million as part of a Chapter 11 Bankruptcy petition.
SFX Entertainment attorney Nancy Mitchell, told the court that Sillerman will be replaced on an interim basis by Michael Katzenstein, the EDM giant's recently appointed chief restructuring officer.