Promoters of cancelled Juicy Festival and Timeless Summer Tour owe creditors more than $14 million

Ticket holders are among creditors owed more than $14 million from the promoters of the Juicy Festival and Timeless Summer Tour festivals. Photo / Megan Wilson

Liquidators for the cancelled Juicy Festival and Timeless Summer Tour are battling to recoup money paid to music artists who did not perform as creditors face a $14 million shortfall.

The two music festivals – scheduled for multiple cities across the country – were cancelled after promoters failed to get a liquor licence for the Auckland event.

Juicy Festival Limited and Timeless Events New Zealand Limited were placed into liquidation after promoters were unable to repay ticket holders.

Liquidators Garry Whimp and Benjamin Francis from Blacklock Rose said funds from ticket sales were used to pay artists and for costs involved in putting on a festival.

However, the companies forfeited a large amount of money when the events were cancelled.

The liquidators’ recently released six-monthly reports into the two companies show Juicy New Zealand owes more than $8.8m to unsecured creditors and $58,128 to secured creditors, but only has $101,762.23 in assets.

Timeless Events New Zealand owes more than $5.2m to creditors, all unsecured, but only has $36,149.78 in assets.

The liquidators have instructed solicitors to write to the artists requesting they return the funds received.

“At this stage, all artists have either not responded or rejected the request to repay the funds.

“We consider that transactions may be voidable under the insolvent transaction provisions of the Companies Act. We are in discussions with our solicitors regarding the most prudent way forward.”

R&B stars Ludacris, Akon and Jay Sean were among those due to perform at Juicy Fest, while the Timeless Summer Tour was to feature 1980s icons Boy George and Bonnie Tyler.

Meanwhile, the liquidators said an issue had arisen in the liquidation where some creditors have been repaid via a bank process known as chargebacks, resulting in funds being held in reserve to be depleted.

“The result of this practice is that those creditors who obtain chargebacks are paid in full ... whilst others receive less than they would have received if these didn’t take place ... in our view, that would defy the fundamental principles of treating all creditors equally,” the liquidators said.

“[We] objected to the chargebacks in order to ensure an equitable distribution, however, the process continued despite the objections.”

The liquidators said they have applied to the court for directions as to the correct position in the situation. A date for a two-day hearing will be set down after April 17 next year.

Companies Office records show Glenn Meikle is the director of both Juicy Festival and Timeless Events New Zealand.

Meikle and Matthew Spratt are joint shareholders of the two companies.

Meikle is also the director of Juicy Festivals Australia and Timeless Events Australia – both of which are in liquidation.

Last week, another events company associated with Meikle and Spratt went into liquidation. Liquidators in Australia were appointed to Jammin Australia Festivals Limited.

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