After it was reported earlier this week that investors had filed a class action lawsuit against SFX Entertainment's company executives, it has now been reported that SFX has raised $90 million from new and existing investors.
SFX Entertainment is the company behind such festivals as Tomorrowland, Stereosonic and Electric Zoo among other high profile festivals.
An unnamed institution purchased $30 million in stock that can be converted into SFX shares at $1.75 per share. Robert Sillerman's own Sillerman Investment Partners III LLC also purchased $15 million in junior stock with another $15 million to be purchased over the next 30 days. The other $30 million comes from company's revolving credit that has been transferred to GoldenTree Asset Management. This is more like a band- aid to the issues that the company faces but Sillerman seems confident the company will survive.
“While the company continues to explore strategic alternatives, this solidifies SFX for the short and long term, so we can focus on producing great festivals and events and operating globally recognized digital properties," Sillerman said in a statement.
We'll keep you updated as more news surfaces.