Fyre Festival Moves To Bankruptcy
A U.S. bankruptcy judge has sided with investors in the disastrous Fyre Festival and moved the promotion company Fyre Festival LLC into bankruptcy.
The Aug. 29 ruling means that creditors who loaned the festival a combined $530,000 will likely get their wish and be able to appoint a trustee with full access to Fyre Festival’s financial records to find out where all the money went The Wall Street Journal reported.
Fyre organizer Billy McFarland was arrested for wire fraud June 30 and was released the following day after posting $300,000 bail. McFarland is facing potential decades in prison.
Robert Knuts of Sher Tremonte LLP, a lawyer for the former Fyre financers, told the Journal the company didn’t contest the petition to move it into bankruptcy.
McFarland’s lawyer Karen Chesley told the paper the festival hadn’t formally retained legal representation.