If the other shoes hasn't yet dropped on SFX, be prepared for a loud thud in the near future.
SFX chairman and CEO Robert Sillerman's troubled dance event company has defaulted on its content agreement with Spotify, refunding the $10 million licensing advance first announced this past summer. Spotify, which will recoup the amount in installments by July 2016, can recoup its advance because the contract called for Sillerman to purchase $15 million in preferred stock by October 17th. Sillerman's failure to make this payment caused SFX to default on a $30 million credit agreement with Barclays Bank and other unnamed lenders, who could at any time declare all funds due immediately.
According to SFX's SEC filing, the default would cause "a cross-default" on a $295 million loan. Those lenders could similarly demand immediate repayment. The lenders haven't yet pushed any big red buttons. Sillerman has since paid $10 million of his $15 million purchase of preferred stock. All parties are attempting to work things out; SFX is in discussions over its loans, and Sillerman is in talks with SFX over the remaining $5 million of his preferred stock purchase.