Echo Festival: Report leaves refund resolution unclear

The Flaming Lips were one of a number of international acts scheduled to perform at Echo Festival. Photo / Getty Images

Music fans awaiting ticket refunds from the cancelled Echo Festival will take no comfort from a liquidators' report today which says it is too early to know if they will get their money back.

The two-day Auckland event - originally planned for McLaren Falls near Tauranga before consent issues forced it to move - was axed last month and ticket holders were offered full refunds. Lower than expected ticket sales was behind the decision to cancel the festival.

Out-of-pocket ticket holders have claimed more than $36,000, the Herald reported last week.

• The Big Read: Echo Festival refund puzzle

The festival's promotion company owes about $400,000 to a secured creditor, which is believed to be Kiwibank.

A report filed with the Companies Office today by co-liquidator Matt Kemp said unsecured creditors - ticket-holders and contractors - are owed about $250,000.

The report said the liquidators were currently unable to determine if there will be enough money to enable a payout to unsecured creditors.

The liquidators hope to have a better idea of this in early February.

Although close to 700 people bought tickets to the event, it was unclear how many of these creditors were still owed money or had already received a refund.

Kemp said the assets of the company appear to be deposits it paid in advance, which have a book value of around $250,000.

The Herald reported last week that musicians who received money up front to play at the festival may be chased by liquidators to recover the funds.