Investors Hoping For Fyre Bankruptcy

Individuals who bankrolled the ill-fated Fyre Festival are trying to push the company responsible for the event into bankruptcy to get a look into the books.

‘Fyre’ Bomb
Jake Strang via AP – ‘Fyre’ Bomb
Tents and a portable toilet set up for attendees for the Fyre Festival in the Exuma islands, Bahamas.

Sher Tremonte LLP filed a petition against Fyre Festival in New York July 7 on behalf creditors who loaned the festival a combined $530,000 according to the Wall Street Journal.

Attorney Robert Knuts told the paper a larger group of investors shelled out more than $20 million and now those individuals want to know what happened to the money. In getting the festival to declare bankruptcy, the creditors hope to appoint a trustee who could have full access to Fyre Festival’s financial records.

Fyre organizer Billy McFarland was arrested for wire fraud June 30 and was released the following day after posting $300,000 bail.

 

Tags