The company behind the now defunct Roxodus music festival has filed for bankruptcy.
On Friday, MF Live Inc., whose sole purpose was to organize the festival, voluntarily filed for the insolvency, just days after the event had been cancelled on July 3.
According to documents signed by Fabien Loranger, the "F" in MF Live Inc., the company owes more than $18 million to almost 200 creditors; including $5 million to Eventbrite Inc.
The bulk of the funds, more than $11 million are owed to Taurus Site Services Inc., and Taurus Projects Group Inc.; Fort Saskatchewan, Alberta companies owned by Loranger.
Documents show the company's assets total just over $154,000.
The event that was initially scheduled to begin July 11 was set to feature rock bands including Nickelback, Aerosmith, and Kid Rock. Initial claims posted online by Loranger cited wet weather as the reason for the abrupt cancellation, but documents provided by accounting firm Grant Thornton state, "We understand that the event did not generate sufficient ticket sales to cover the expected costs, leaving MF Live Inc. insolvent."
Ticketholders who purchased tickets through Eventbrite have been promised a refund through an Eventbrite-funded Fan Relief Program. Anyone who has not yet received their money back can click here.
The first meeting for creditors will be held on July 30 at the Grant Thornton offices in Toronto.
