SFX Entertainment filed with the U.S. Bankruptcy Court a Second Amended Joint Plan of Reorganization and First Amended Disclosure Statement.
The Disclosure Statement asserts, “The Plan proposes the issuance of two classes of securities: New Series A Preferred Stock and Reorganized SFXE Common Stock. The shares of New Series A Preferred Stock to be issued shall have a face amount and a liquidation value as of the Effective Date equal to (i) the Tranche B DIP Facility Claims, exclusive of any Incremental Tranche B DIP Loan Claims, plus (ii) the Original Foreign Loans Claims, plus (iii) an additional amount, earned on the Effective Date, equal to 2% of the amount of the Tranche B DIP Facility Claims (other than the Incremental Tranche B DIP Loan Claims) and the Original Foreign Loan Claims. The New Series A Preferred Stock shall, among other things, (i) accrue PIK dividends at 15% per annum and shall be perpetual preferred with a mandatory redemption at the Liquidation Preference, upon a Liquidity Event (ii) have voting rights entitling it to vote on a 20:1 ratio to the voting rights of the Reorganized SFXE Common Stock, and (iii) have such other terms and conditions as set forth in the Restated Charter Documents or the New Series A Preferred Stock Certificate.”
The Disclosure Statement continues, “The shares of Reorganized SFXE Common Stock to be issued shall be issued pursuant to the Plan and the Restated Charter Documents. The Plan also proposes the issuance of three classes of CVRs: the Class A CVRs and, the Class B CVRs, and Litigation CVRs.”
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