The year is off to a rough start for SFX, who ended 2015 in a perilous position. We only recently told you that SFX is exploring bankruptcy as it considers options to emerge from indebtedness, but things got even worse today. Today, the conglomerate received notice from a group of noteholders that it is considered in default on a $10.83 million promissory note from July of 2015.
SFX had $3 million due on Jan 4th of this year, which it did not pay. The details of the note provide that interest accrues and the entire remaining amount is accelerated so that it is immediately due. As a result, SFX is down 20.7% in trading today and in grave territory. On the other hand this is exactly the type of debt that might be dealt with in bankruptcy proceedings. Stay tuned for the next shoe to drop in the coming months as the company teeters on the brink.
Source: Seeking Alpha