Concert producer SFX Entertainment Inc. can begin spending its $115 million bankruptcy loan since receiving an initial approval from a bankruptcy judge yesterday, the Wall Street Journal reported today. The permission from Bankruptcy Judge Mary Walrath gives SFX access to an $80 million chunk of that loan, being provided by junior bondholders that have worked with SFX to construct the terms of a restructuring agreement. SFX will return to court in several weeks to request a final signoff on the loan and a number of other motions approved on an interim basis Wednesday, including permission to pay utility bills as well as critical vendors and employees. The bankruptcy loan will be used to pay off senior lenders and provides $23 million to cover operational expenses.
