Mountain Sounds: creditors to get 2-3 cents a dollar back
Nearly 500 unsecured creditors owed almost $1.5 million after the collapse of failed music festival Mountain Sounds will only get two to three cents in their dollar back.
Nearly 500 unsecured creditors owed almost $1.5 million after the collapse of failed music festival Mountain Sounds will only get two to three cents in their dollar back.
In a letter to creditors, liquidator Jeffrey Shute said he was in a position to pay a first and final dividend on July 16.
“I anticipate the dividend will be in the vicinity of 2.21 to 3.38 cents in the dollar,” he wrote.
“For clarity, this means creditors, including ticket holders, are expected to receive 2 to 3 cents for every dollar they are owed.”
Any creditors who have not already provided proof of debt are urged to do so by June 11 to be eligible for consideration for the small dividend.
The liquidator’s final report found 487 unsecured creditors were owed a total of $1,488,232.96.
The major creditors include ticketing company Eventbrite, which is owed $893,000 after it refunded Mountain Sounds ticketholders and event suppliers, sponsors and artists who were left $291,681.73 in the red.
Ticketholders who purchased hard copy tickets at other outlets are owed $117,142.43 while the Australian Taxation Office is owed $89,012.68 and the remaining creditors are owed $97,396.12.
“My preliminary investigations suggest that many of the artists contracted to perform at the event were required to be paid either in full or in part prior to the event,” the liquidator’s report found.
“Further, in circumstances where the event was cancelled, any monies paid were non-refundable, and in some cases, even required the company to pay the balance of the contracted amounts.”
The creditors report found Mountain Sounds was owed $6,187.50 by debtors including $4,207.50 by Diageo Australia, $1815 from Architects of Entertainment and $165 from Audiopaxx.
The liquidator indicated these debtors would be sent to a debt collection agency to pursue.
The liquidator also clawed back $2,634.53 in refunds by cancelling prepaid insurance policies held by Mountain Sounds.
The creditors report said a Roads and Maritime Services database search found a 2007-model Toyota Hilux 150 series utility owned by the company valued between $4000 to $6000.
“To avoid incurring additional costs associated with realising the vehicle by way of public auction, I invited the director of the company to submit an offer to purchase the vehicle,” the report reads.
“After some negotiations, I accepted an amount of $3,181.82 plus GST.”
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