Pemberton Music Festival: Millions owed all all over town

The bankrupt businesses behind the cancelled Pemberton Music Festival may owe ticket holders and other creditors more than $16.7 million, according to documents obtained by Postmedia.

Pemberton Music Festival Limited Partnership, which along with 1115666 B.C. Ltd filed for bankruptcy Thursday afternoon, has $6.6 million in assets but owes $10.1 million, according to a statement of affairs provided by the Office of the Superintendent of Bankruptcy Canada.

Cecelia Marwick from Seattle is attending her first Canadian music festival at the 2016 Pemberton Music Festival.

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Cecelia Marwick from Seattle is attending her first Canadian music festival at the 2016 Pemberton Music Festival.

The debtors’ liabilities total $16.74 million, including more than $8.2 million owed to 2017 ticket holders, according to the 11-page document.

Among 120 unsecured creditors listed, the Canada Revenue Agency is owed close to $1.7 million, the Society of Composers, Authors and Music Publishers of Canada is owed $373,016 and caterer Truffle Fine Foods is owed $139,522.

The creditors will need to provide supporting documentation to prove these claims.

Heidi Gwaii, left to right, Ashley Rose and Alyx Simms dancing at a pop-up dj set by Chromeo at the Pemberton Music Festival, July 18, 2015.

About two dozen claimants are based in the U.S., including a charter-bus firm owed $577,547 and an event-production company owed $241,873.

Many more are small Pemberton and Whistler firms and residents with claims of less than $10,000.

And a pair of secured creditors — 1644609 Alberta Ltd. and Janspec Holdings Limited — with claims totalling close to $3.6 million if proven, will be paid in full before any of the unsecured creditors.

Deposits to artists totalling more than $1.9 million are listed as the debtor’s property and considered among its $6.6 million in assets.

Hula hoop dancer performs near the Bass Camp at the Pemberton Music Festival, July 18, 2015.

According to a fact sheet posted on the website of Ernst & Young, which has been appointed trustee in the bankruptcies, the festival has been significantly impacted over the past two years by the weak Canadian dollar relative to the US dollar because artists are paid in US dollars. Difficulty sourcing talent this year due to a limited number of artists touring was also blamed.

The document says the festival “incurred significant losses in each of the previous three years” and the 2017 festival had earned $8.225 million in revenue by May 18 while budgeted expenses had hit $22 million.

The festival continued selling tickets until the moment organizers announced that they had gone into bankruptcy Thursday.

Ticket holders, who paid anywhere from $299 for general admission up to $1,799 for “Super VIP” passes were advised by Ernst & Young that there would be no automatic refunds. They’ll need to file a proof of claim as unsecured creditors with Ernst & Young or contact their bank or credit card issuer to determine if there’s any way they’ll get their money back.

1115666 B.C. Ltd, which is a general partner acting on behalf of Pemberton

Source:: Vancouver Sun – Entertainment

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