SFX Entertainment Files For Bankruptcy; Gets $115 Mln Financing

(RTTNews) - SFX Entertainment Inc. (SFXE) said that it filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

The company stated that its international operating subsidiaries are not included and will not be impacted by the filing.

The company stated that it has reached an agreement with an ad hoc group of bondholders to significantly restructure the Company's outstanding debt. SFX and the ad hoc group have entered into a Restructuring Support Agreement ("RSA") that will eliminate more than $300 million in debt from its balance sheet, provide significant working capital and convert the majority of the bondholder group debt into equity in a newly strengthened private company.

SFX anticipates moving expeditiously through this process. The RSA includes a commitment from the ad hoc group to provide up to $115 million in DIP (debtor-in-possession) financing. This financing, which is subject to court approval, will be used to pay ongoing, normal course of business, obligations including artists, venues, sponsors, partners, vendors and suppliers.

The company and the ad hoc group have agreed to the principal terms of a Chapter 11 Plan of Reorganization, which will be subject to approval by the Bankruptcy Court. Moreover, upon emergence, the DIP loan will convert to provide a fully funded exit from Chapter 11.