×
You will be redirected back to your article in seconds

Fyre Festival Parent Company Placed in Bankruptcy by Judge

The company that promoted the disastrous Fyre Festival earlier this year has been put into bankruptcy by a judge, according to The Wall Street Journal. The move was made in U.S. Bankruptcy Court after three lenders, who filed their suit in July, sought to force Fyre Festival LLC into chapter seven bankruptcy.

The three loaned the festival $530,000 and are seeking to find out whether any of it can be returned. Robert Knuts, an attorney for the lenders, said Fyre did not contest the petition.

“If the money was burned up in the Bahamas we’re not going to be able to recover it but at least we’ll know where it went,” Knuts told the paper.

A trustee is likely to take control of Fyre Festival LLC and will have the authority to research the company’s records and recover money for lenders. It could even force the festival’s parent company, Fyre Media Inc., into bankruptcy.

In the wake of the festival’s spectacular collapse, Fyre Media chief Billy McFarland spent a night in jail after being arrested June 30 on suspicion of fraud and swindling investors out of millions of dollars. He was released the following day on his own recognizance and the promise of a $300,000 bond.

The heavily hyped “luxury concert” — which was scheduled to take place on a small island in the Bahamas and feature Blink-182, Migos and Disclosure — collapsed on in a mess of disorganization on April 29, before it had even started. Far from the luxury accommodations and celebrity-chef-prepared meals promised by its producers — McFarland and rapper Ja Rule — concertgoers were met with flimsy tents, boxed lunches, near-total disorganization and long waits for flights to return to the mainland after airlines began refusing to fly would-be concertgoers to the overcrowded island of Exumas.

One production professional briefly associated with the festival told Variety the event was marked by “incompetence on an almost inconceivable scale.”

 

 

 

 

 

More Biz

  • Harvey Weinstein arrives at New York

    Judge Refuses to Pause Weinstein Class Action Case

    A judge on Tuesday denied Harvey Weinstein’s request to put a class action lawsuit on hold pending the outcome of his criminal trial. Ten women have sued Weinstein in federal court in the Southern District of New York, accusing him of violating the federal sex trafficking statute. The suit also alleges that an array of [...]

  • Andrea Ganis Promoted to President of

    Atlantic Records Elevates Andrea Ganis to President of Promotion

    Andrea Ganis has been promoted to the newly created position of president of promotion for Atlantic Records, it was announced today by Atlantic Chairman & COO Julie Greenwald and Chairman & CEO Craig Kallman. In her new role, she will continue to oversee all promotion activities for Atlantic and its subsidiary labels while serving on [...]

  • Roma

    Netflix Joins the Motion Picture Association of America

    UPDATED WASHINGTON — Netflix has joined the Motion Picture Association of America, a move that reflects its evolution as a major player in the movie business. The MPAA currently has six major studios as members, and it collected about $38 million in membership dues in 2017, according to its most recent filing with the IRS. [...]

  • Fate of 'Simpsons' Up in Air

    What Will Happen to 'The Simpsons’ as Disney Takes Over Fox?

    When “The Simpsons” ends its 30th and current season this spring, it will have racked up 663 original episodes — having a season ago passed “Gunsmoke” (635) as the longest-running scripted program in television history. But with the Walt Disney Co.’s acquisition of 21st Century Fox pending, one of TV’s least likely institutions could prove more [...]

  • Best Worst Performances Pink

    Pink, Muse, Chris Stapleton to Headline Citi Sound Vault During Grammy Week

    Pink, Muse and Chris Stapleton will headline Citi Sound Vault, the three-night live-music platform taking place at the Hollywood Palladium during Grammy week. Pink will kick off the Live Nation-produced series on Feb. 7, followed by Muse on Feb. 9 and Stapleton on Grammy night, the 10th. “This will be my first time performing at the [...]

  • China’s Maoyan Tweaks Terms for $350

    China’s Maoyan Tweaks Terms of $350 Million IPO

    Maoyan Entertainment, the Chinese ticketing giant, has updated the terms of its share offer in order to keep its IPO on course. It aims to raise up to $350 million of new cash by floating on the Hong Kong stock market. In a new draft prospectus published Tuesday, the company revealed that it had brought [...]

  • 76th ANNUAL GOLDEN GLOBE AWARDS --

    Tyler Perry: 6 Lessons He Shared at NATPE's 'Living the Dream' Summit

    MIAMI — Tyler Perry took time out of his “Madea’s Farewell” live stage tour and spent his Martin Luther King Jr. holiday giving an inspiring speech to aspiring producers and students gathered here for the annual NATPE convention. Perry was the keynoter Monday at the conference’s first ever “Living the Dream: A Career in Content” session [...]

More From Our Brands

Access exclusive content