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A Las Vegas bankruptcy judge has approved a loan from Ultimate Fighting Championship owners Lorenzo and Frank Fertitta that will give Xyience an additional $2.6 million in hopes of helping the company be able to continue operations.
The news comes from a report by John G. Edwards of the Las Vegas Review-Journal, who also states that Judge Mike Nakagawa has also OK’d a plan that will have Xyience use the UFC brand to help market its product in hopes of generating enough profit in order to sell the company.
The ruling was made in light of company officials stating that without the loan, they would be unable to keep products on the shelves of carrier stores such as GNC.
“We’re excited. We’re optimistic. The process has gone well,” Xyience CEO Omar Sattar told the Review-Journal. “We think we can continue to build the brand going forward.”
While a potential buyer was reportedly in attendance at the hearing, attorneys for three creditors owed money from Xyience and some stockholders were apparently unhappy with the judge’s ruling, stating that the decision would only benefit the Fertitta brothers and the other companies that they own in the long run.
Xyience, one of the UFC’s main sponsors over the last few years, filed for bankruptcy protection amid claims of intimidation and death threats last month.
The bankruptcy was filed under Chapter 11, which gives the company some time to reorganize before they move forward with their claim. The bankruptcy became necessary when the company was unable to raise $7.5 million more from shareholders.
The Fertitta brothers are reported to have close to $20 million invested in the Xyience brand.
Xyience signed a $15 million sponsorship agreement with the UFC for 2007 and has been a primary sponsor of the promotion since 2005.
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