A federal judge has forced the failed Fyre Festival into bankruptcy in New York. The ruling was issued late in August and includes the company that owns the festival. The judge approved an involuntary petition for bankruptcy that was filed against Billy McFarland and Fyre Fest LLC. The approval from the judge forces Chapter 7 bankruptcy.
The petition was requested in July by a trio of investors. The investors claimed that they invested some $530,000 in the festival. The event was scheduled to take place over the span of two weekends in the Bahamas. It was to be headlined by Major Lazer, Blink-182 and G.O.O.D. Music. All three investors were promised that they would be repaid by May of 2017, but have yet to see any money.
McFarland has been ordered by the judge to file all the statements, schedules, lists and any other documents associated with local and federal rules of bankruptcy. These documents must include the list of McFarland's creditors and what they are owed. McFarland was given two weeks to provide all of these documents to the court.
Hundreds of people traveled to the Bahamas for the festival, but found a poorly-constructed site and abysmal preparations. So far, McFarland has had more than one dozen lawsuits filed against him for the failed festival. McFarland was arrested recently and charged with wire fraud in the case. The government has said that it is closing in on a settlement for the criminal case.
Headed towards bankruptcy in Long Island? It's best you speak with an experienced bankruptcy law attorney about your options, which include filing for Chapter 7.
Source: Billboard, "Judge Forces Fyre Festival in Bankruptcy," Sep. 02, 2017