Struggling digital marketing company Viggle Inc. (Nasdaq: VGGL) has secured a new loan from its CEO and a new sales agreement.

Viggle announced on Jan. 21 that CEO Robert Sillerman lent the company $2 million on Jan. 14. The loan bears interest at 12 percent. Sillerman made a previous  $2 million loan to Viggle in December. The new loan is expected to enable the company to fund working capital requirements.

Viggle, headquartered in New York, developed a mobile application that gives members redeemable rewards points for watching TV shows or listening to music. Viggle also operates Wetpaint, a celebrity news site, NextGuide, which lets users set reminders for television shows, and Choose Digital, a digital marketplace where companies can incorporate digital content into existing rewards programs.

The company also has a new three-year sales agreement with SFX-94 LLC, a subsidiary of SFX Entertainment Inc. (Nasdaq: SFXE) Under the terms of the deal, which was announced Jan. 23, Viggle appointed SFX as its exclusive sales agent for the sale of advertising and sponsorships. SFX will be allowed to hire 25 members of Viggle’s sales team, and will be paid a 25 percent commission on sales it makes. SFX and Viggle share a board member, Greg Consiglio, who is moving to SFX as president. Sillerman is also CEO of both companies.

Viggle’s accountant, BDO USA LLC, raised substantial doubt about its ability to continue as a going concern, or without the threat of liquidation, because of recurring losses from operations and a deficiency in working capital. The company’s future depends on raising funds until it can bring in enough revenue. Viggle said in a Sept. 29 filing with the U.S. Securities and Exchange Commission that it is unlikely to pay dividends or generate significant revenues in the immediate or foreseeable future.

The company previously raised cash through a securities sale. In October, Sillerman Investment Co. III LLC acquired Viggle securities for $30 million and issued a line of credit promissory note that gave Viggle a $20 million line of credit. Sillerman also agreed to buy shares of Series C Convertible Preferred Stock for $10 million. For more on the company’s deal with Sillerman, see Troubled Digital Marketing Group Viggle Raises Cash.

For the previous edition of Turnaround Tuesday, see After Missing Interest Payment, Struggling Energy Co. Ivanhoe Works to Restructure.

For more struggling companies, check out Mergers & Acquisitions Distressed Company Watch List. 

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