'We're not getting any money': Roxodus creditors hopes extinguished
From the moment the highly-anticipated music festival, Roxodus, was cancelled, creditors waited for word if they would recoup their financial losses.
They learned the hard truth at a meeting with the insolvency trustee in Toronto on Tuesday.
"We're not getting any money. That's pretty much what I got out of it. The rock stars got paid, and we didn't," said Krista Howard.
Just six of the nearly 200 creditors who were invited to meet with representatives from the insolvency trustee, Grant Thornton, showed up for the meeting. Most have already resigned themselves to the fact that they are out thousands of dollars.
A new report prepared by Grant Thornton confirms that disappointing ticket sales were to blame for the defunct festival.
Creditors are owed a combined total of $16.5 million, almost 100 times more money than MF Live Inc. has left in the bank.
Organizers anticipated the four-day event would sell 40,000 tickets, but records show around 10,000 tickets were actually sold.
The trustee says it plans to look into the payments made to the agents of performers like Aerosmith, Nickelback, and Kid Rock, all of whom were paid in full, but never stepped foot on stage. "We do intend on having the discussions with those agents to see if there is anything that could be recovered from them," said Rob Stelzer, Vice President of Grant Thornton.
The creditor with the lion's share of debt in the wake of the failed festival is ticket-vendor site, Eventbrite Inc. The online company is on the hook for $5 million after repaying ticketholders.
Some creditors tell CTV News they are considering taking legal action against MF Live Inc.