On Monday, the debtor told the bankruptcy court that it reached an agreement with Elvis Blue Moon Parent for $30 million in interim financing as 19’s parent Core Media attempts restructuring on some $400 million in debt. Core was originally set up to manage the intellectual property of Presley and managed Graceland for a time, but sold assets in 2013. However, Core retained some equity interest in Elvis Presley Enterprises (which owns Elvis Blue Moon Parent), and the relationship has created a bit of a lifeline for the debtor.
According to a motion to approve the financing, “The DIP Credit Facility, if approved by the Court, will help fund the Debtors’ operations during these chapter 11 cases and allow the Debtors to continue the uninterrupted production and development of entertainment content, including continued production of its live shows, such as the popular television series So You Think You Can Dance, which is currently under production.”
Court filings reveal that SYTYCD will require about $10 million in expenditures over the next three months.
Also, so far, Core has been able to stave off Simon Fuller whose payment demand on on April 11 for 3.37 million dollars kicked off the bankruptcy. Soon after the Chapter 11, the Core was able to get a U.K. court to recognize it and head off any winding-up petition.
Simon has retained Timothy Walsh and Darren Azman at McDermott Will & Emery to represent him in the American bankruptcy case. If Core is able to restructure, it will stave off any attempt on the part of Simon to nab rights to Idol.
This could get interesting!