Today it was announced who made the 20 million dollar investment in EDM conglomerate SFX Entertainment last week, offering the company and its founder Robert Sillerman a glimmer of hope in the face of what looked like ever-worsening financial turmoil. According to documents filed with the Securities and Exchange Commission (SEC) today, the company that supplied the new financing was Catalyst Capital Group. The Canadian private equity firm specializes in "investments in distressed situations". The firm has previously invested in other media businesses, including Relativity Media, IMAX, and Canada's largest media company, Canwest.
A spokesperson for SFX said the fresh investment is for current operations.
SFX's woes have been nothing if not well documented. For starters, there was the recent news that the company's stocks had hit an all time low of just 7 cents per share, following the revelation that they had defaulted on 10.9 million dollar promissory note. This of course followed up the announcement that the company might go bankrupt, which is to say nothing of their previous plans for debt restructuring and the class action lawsuit brought against the company by shareholders.
The announcement that SFX had received resuscitating financing was made last Friday before markets opened, and lead to the company's shares skyrocketing 57 percent up to 12.4 cents per share, the New York Post reported.
Read more of our coverage on SFX here.
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