SFX Entertainment has raised $90 million in investment after legal action against the events company was announced earlier this week.
Robert F.X Sillerman's company is under fire for apparently misleading investors he had the finances to fully acquire it, but it revealed yesterday that stock had been purchased by "new and existing" investors to secure "capital for new initiatives and operating and working capital needs".
Billboard reports that $30m of senior preferred stock - stock that has a higher hold over the company's assets than common stock - was bought by an "unnamed institution", with Sillerman's own Sillerman Investment Partners III LLC acquiring $15 million of junior preferred stock and promising cash dividends of 29.5 per cent for the next two years.
Another $15m has to be purchased by Sillerman Investment Partners III LLC within the next month and the remaining $30m investment comes from SFX's credit facility.
This follows the SFX-owned Beatport having to delay royalty payments to record labels, but a statement from Sillerman brands the financing as a way to steady the ship.
"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."