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Eventim: Barracuda safe amid Austrian banking crisis

The Commerzialbank Mattersburg scandal will have no effect on Barracuda Music's business, its parent company has said, despite the bank holding €34m of Barracuda cash

By IQ on 31 Jul 2020

A Commerzialbank Mattersburg branch in Hirm, Austria

A Commerzialbank Mattersburg branch in Hirm, Austria


image © Der Photograf/Wikimedia Commons (CC BY-SA 4.0)

Germany’s CTS Eventim, the parent company of Austrian promoter Barracuda Music, has announced that Barracuda’s business is protected against the bankruptcy of Commerzialbank Mattersburg, despite the company holding deposits of some €34 million with the soon-to-be-liquidated bank.

After finding inconsistencies in its accounting, Austria’s Financial Market Authority prohibited Commerzialbank – headquartered in Mattersburg, near the Hungarian border – from trading effective 14 July, and the bank is now in the process of being wound up. It is reportedly over-leveraged to the tune of €528m, with creditors expected to receive up to €490m under Austria’s deposit protection scheme.

According to Eventim, which announced its acquisition of Barracuda in December 2019, adding it to its Eventim Live promoter network, it has put in place a “comprehensive financing plan” that ensures the “activities of the Barracuda Group are well protected, particularly its two flagship festivals, Nova Rock and Frequency.”

Klaus-Peter Schulenberg, CEO of the live entertainment giant, explains: “Even in times of coronavirus, we are pursuing a long-term corporate strategy and are fully aware of Barracuda’s enormous potential. We are therefore pleased that Barracuda, one of most creative concert promoters in Europe, has been a member of our corporate family since early 2020, which also means a significant investment in Austria, a market that is so important to us.

“We are delighted for hundreds of thousands of music fans from Austria and abroad that we are able to carry on our successful work”

“The team around Ewald Tatar, Barracuda’s managing director, can rely on us totally, even in these turbulent times.”

“We are immensely struck by the fast and uncomplicated way that CTS Eventim jumped to our side, and are really very glad to have such a strong and flexible company as our parent,” says Tatar.

“We are delighted for hundreds of thousands of music fans from Austria and abroad that we are able to carry on our successful work and that the future of Nova Rock, Frequency and hundreds of concerts a year is secure.”

Schulenberg adds that Eventim and Barracuda “will take any steps that are necessary to protect our rights in respect of the current situation at Commerzialbank Mattersburg.”

 


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