THE company behind a cancelled music festival looks likely to be wound up at a creditors’ meeting.
A Lost Weekend was due to take place at Rutland Water on June 20, 21 and 22, but heavy rain caused organisers to cancel because of health and safety concerns about the campsite.
Ticketholders were told they would be able to get a refund through online payment firm PayPal or their credit card company. But last week a letter was sent to all creditors, including ticketholders, to say A Lost Weekend Limited, which had been set up to run the festival, had applied to go into voluntary liquidation.
A creditors’ meeting will be held at 9 Railway Terrace in Rugby at 2.30pm on August 24, when insolvency firm Bridge Newland is expected to be appointed as a liquidator.
The festival was the idea of Richard Garton, of Main Street, Glaston, who is listed as the director of A Lost Weekend Limited. Several attempts to contact Mr Garton for comment have been unsuccessful.
An announcement posted on www.alostweekend.co.uk said: “It is with regret that unfortunately, due to the cancellation of the event, the company is not financially able to repay all of its creditors and therefore after taking professional advice from licensed insolvency practitioners, Bridge Newland Limited, the company will shortly be placed into creditors voluntary liquidation.
“All creditors of the company, including individual ticketholders, will shortly be written to by the nominated liquidator, being Mr Ben Robson of Bridge Newland Limited, who will provide further details as to how ticketholders may be able to claim a refund.
“However it should be noted that the company has been advised not to action any refunds to ticket holders through PayPal as it is believed that the monies they hold are not held on trust as a deposit for each ticket holder therefore any refunds made would be considered a preference payment and would need to be recovered by the appointed liquidator.
“It is currently unclear as to whether PayPal will use the monies that they hold to action refunds themselves, or whether these funds can be recovered as an asset of the company for the general body of creditors, however this is currently being reviewed and a further notification will be made regarding this once know.”
The letter from Bridge Newland to creditors says the shareholders will meet prior to the creditors meeting where a resolution to wind up the company will be proposed.
Excitement had been building for the festival, which was due to be headlined by Toploader. A number of bands played successful gigs in the area following the festival’s cancellation, including Toploader who played to a sellout crowd at The Grainstore pub in Oakham.
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