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Promoters owed money by collapsed festival package company are being urged to contact administrators ahead of Friday's deadline
By James Hanley on 30 Nov 2022
Promoters owed money by collapsed festival package company Festicket are being urged to contact administrators ahead of Friday’s (2 December) deadline.
The London-headquartered event discovery and booking platform had debts of more than £22.5 million when it went bust in September. Six firms were each owed in excess of £1m, with a further 20-plus creditors owed six-figure sums, according to documents filed with Companies House.
Administrator ReSolve Advisory said previously that despite several promoters being under the impression the cash from their ticket sales would be ringfenced by Festicket, that does not appear to have happened.
“We have received communication from a number of promoter creditors who are asserting that the net realisations from their ticket sales were to be held in trust for them by the company,” it said. “Our understanding is that the company did not segregate or ringfence any assets for the benefit of specific parties.”
At the request of administrators, the Insolvency and Companies Court has ordered that any creditor asserting that its monies were held on trust by Festicket should notify administrators of its “trust claim” along with an estimate of its value by no later than 4pm on 2 December. Following an initial meeting on 17 November, a second directions hearing is expected to take place at the London court on 9 December.
“If you were led to believe the money from the sale of your events was to be held on trust by Festicket then you must notify the administrators by the aforementioned deadline”
A letter circulated around the industry, seen by IQ, puts the number of promoters owed money by Festicket as “at least” 105, “some of whom are asserting trust claims whilst others are suggesting they are simply creditors”.
“If you were led to believe the money from the sale of your events was to be held on trust by Festicket (or any of its other trading names) then you must notify the administrators by the aforementioned deadline,” it adds. “Any such respondent must also notify the administrators if you intend to attend the second directions hearing and whether you intend to oppose or support the main application.
“Please provide any such information to [email protected] as soon as possible and in any event by the deadline.”
Any promoter wishing to join current and potential future litigation is advised to email [email protected]
Founded in 2012 by Zack Sabban, Jerome Elfassy and Jonathan Youne, Festicket also ran offices in the US, the Netherlands, Germany, Portugal, France and Australia. The company, which acquired Event Genius and Ticket Arena in 2019, recorded losses of approximately £11.3 million and £8m in the 2019 and 2020 financial years, respectively.
US-based ticketing exchange Lyte acquired Festicket and Event Genius assets for £100,000 in September and pledged to protect Festicket employees and find “ways to reconcile and rebuild with affected promoter clients”.
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