MF Live Inc., the company behind the Roxodus Music Festival, filed for bankruptcy on Friday.
It's the latest domino to fall in the controversy around the massive music festival, which was abruptly cancelled a week ago - days before thousands of rock fans were to descend on the Edenvale Aerodrome to see legends such as Aerosmith, Alice Cooper, Kid Rock and a host of others.
According to a creditor update posted to Grant Thornton LLP’s website on Friday, MF Live Inc. filed for bankruptcy on July 12. According to the bankruptcy documents filed on July 9, MF Live’s assets total $154,075. Their liabilities total $18,261,874.70. The documents are signed by Fab Loranger, co-owner of MF Live Inc.
They list nearly 200 creditors to which they have outstanding debts.
MF Live’s sole purpose was to organize the Roxodus Music Festival.
According to the trustee, initial reasons given for cancelling the festival by MF Live were not telling the full story.
“We understand that the event did not generate sufficient ticket sales to cover the expected costs, leaving MF Live Inc. insolvent. We also understand that earlier wet weather posed certain challenges in preparing the site for the event and prevented MF Live Inc. from being able to host a safe event,” the trustee wrote in their note to creditors. “Further information will be provided in the trustee’s preliminary report to creditors.”
According to the update, ticketholders who purchased tickets through Eventbrite may still be entitled to a refund by the Eventbrite-funded Fan Relief program.
However, if you purchased tickets for Roxodus and have been told you’re not entitled to a refund, there’s still hope.
“If you have been told that you are not entitled to a refund, then you may make a claim as a creditor of MF Live Inc.,” wrote the trustee in a creditor frequently-asked-questions letter. “If that is the case, please submit a proof of claim form to the trustee for review.”
Proof of claims forms can be downloaded from the trustee’s website.
The notice of the bankruptcy and first meeting of creditors were mailed by Grant Thornton on July 15 to all known creditors of MF Live.
The first meeting of creditors will be held at the Grant Thornton offices at 200 King Street West, 11th floor in Toronto on July 30.
The purposes of the first meeting of creditors include examining the bankrupt’s affairs, affirming the appointment of the trustee, appointing inspectors and giving directions to the trustee with respect to the administration of the estate.
For up-to-date information on the bankruptcy filing, or to download proof of claim forms, click here.