A federal judge is forcing the company that owned the disastrous Fyre Festival into bankruptcy.
On Tuesday (Aug. 29), U.S. Bankruptcy judge Martin Glenn approved an involuntary petition against Billy McFarland and his Fyre Fest LLC to force the company into Chapter 7 bankruptcy. Investors John Nemeth, Raul Jimenez and Andrew Newman filed the request in July, claiming they invested $530,000 into the doomed festival that was set to take place over two weekends in the Bahamas with headliners Blink-182, Major Lazer and G.O.O.D. Music. The men were promised repayment by May but never received any money from McFarland.
Glenn has ruled that McFarland must “file all schedules, statements, lists and other documents that are required under the Federal and Local Rules of Bankruptcy Procedure,” which includes a list of all creditors and the money they’re owned, as well as “an affidavit and proposed case conference order.” McFarland has two weeks to hand the documents over to the court.
The doomed festival drew international headlines after many fans flocked to the Bahamas in search of a VIP paradise, only to find a half-constructed festival site and woefully inadequate preparations. Over a dozen lawsuits have been filed against festival founder Billy McFarland, who was arrested earlier this month and charged with wire fraud. Officials with the U.S. Attorney’s office indicated they’re close to reaching a settlement in the criminal case.
Attorney Gregory Messer of New York has been selected as the interim trustee for the involuntary Chapter 7 bankruptcy case. Claimaints can reach him at (718) 858-1474.
PHOTO: Patrick McMullan/Patrick McMullan via Getty Images