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Fertitta-Owned Company Offers $1 Million Loan To Xyience




Fertitta-Owned Company Offers $1 Million Loan To Xyience
The Las Vegas Review-Journal reports that Zyen, a Fertitta-controlled company, will provide post-bankruptcy financing to the embattled supplement and energy drink company, Xyience, Inc. pending the review and issuance of a judicial order. Zyen offered to issue Xyience a $1 million loan, which will likely be used to allow Xyience to continue operations while in bankruptcy. Under the recent bankruptcy court proposal, Zyen may increase the loan amount to $2.6 million.

Earlier this year, Xyience filed for Chapter 11 bankruptcy to reorganize the company and restructure outstanding debt. Among the creditors listed in the Xyience bankruptcy, Zyen has $5.3 million in secured claims (meaning that there is some form of collateral to secure the debt) and $12.5 million in unsecured claims.

In addition to Zyen, the Fertittas also have ownership interests in Zuffa, LLC. In 2007, Xyience entered into a $15 million sponsorship contract with the Zuffa-controlled UFC. The Fertittas through Zyen more than likely issued the loan to Xyience to allow them to continue operations while Xyience attempts to sell its company to potential buyers.

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