Struggling entertainment rewards company Viggle Inc. (Nasdaq: VGGL) is getting by with a little help from founder Robert Sillerman, whose affiliate has given the business a $10 million line of credit.

Viggle, headquartered in New York, is a mobile and web-based entertainment marketing operation that gives consumers rewards for watching shows or listening to music, and aims to help advertisers with a targeted audience.

The loan agreement gives Viggle access to capital, provided the business has an interest-coverage ratio equal to or greater than one, or if the lender (Sillerman Investment Company IV LLC) waives that requirement, according to filings with the U.S. Securities and Exchange Commission. The loan matures on Dec. 31, if the company is sold or if a substantial change in ownership takes place. Sillerman himself has previously lent the company more than $6.5 million, SEC filings show. Viggle isn't Sillerman's only business – he recently made (then pulled out of) a take-private offer for another company he founded -- electronic dance music business SFX Entertainment Inc. (Nasdaq: SFXE). SFX owns TomorrowWorld, an event at which rain reportedly left festival-goers stranded and requesting refunds in September.

Viggle has been on Mergers & Acquisitions’ Distressed Company Watch List for more than a year, because the company's accountant continues to raise substantial doubt about Viggle’s ability to continue as a going concern, or without the threat of liquidation – a decision prompted by recurring losses. Viggle also had a working capital deficiency as of June 30, SEC filings show.

Though Viggle is still troubled, the company had some good news for its latest quarter. Viggle reached a revenue high for fiscal 2015 (ended June 30) bringing in $25.6 million, a 42 percent increase over fiscal year 2014. Adjusted Ebitda loss for fiscal 2015 was $29.3 million, with $5.8 million coming from Q4 – the lowest quarterly loss in Viggle history.

For the previous edition of Turnaround Tuesday, see Struggling Drive-Cam Biz Diversifies with Meat Pies. For a list of struggling businesses, check out Mergers & Acquisitions' Distressed Company Watch List

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.