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Fyre Festival LLC, the holding company behind the ill-fated festival, has been forced into liquidation by a NY bankruptcy judge as lenders try to recoup their investments
By Jon Chapple on 31 Aug 2017
Robert Knuts, a lawyer representing three Fyre Festival investors, has said he is looking forward “to finding out where the money went” after successfully forcing the company behind the doomed event into bankruptcy.
New York judge Martin Glenn placed Fyre Festival LLC into chapter-seven bankruptcy, or liquidation, on Tuesday, following pressure from Knuts’s Sher Tremonte law firm, which is aiming to recoup US$530,000 invested in the disastrous Bahamas festival by John Nemeth, Raul Jimenez and Andrew Newman.
As part of the ruling, Glenn has ordered Fyre Festival LLC to prepare documents showing all monies owed by the company.
Though Knuts represents a group of more than 20 investors (who collectively lent the festival some $4 million), theirs is just one of a number of lawsuits targeting Fyre Festival and its organisers, Billy McFarland, Ja Rule and their company Fyre Media.
McFarland, who became the public face of the festival, was arrested in July, charged with operating a “scheme to defraud investors” out of almost $1.2m. He was later released on bail, and is currently in plea-bargain negotiations with the US government.
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