Smart Company have written that the hip hop event and touring company appointed Jirsch Sutherland as the administrators last week, and while the creditor's report is still being prepared the debts are believed to be “in excess” of $2 million.
The early indication is that the festival will try and trade its way out of debt, with Jirsch Sutherland's Sule Arnautovic telling Smart Company that promoter Dwayne Cross and some creditors were hoping to restructure the businesses through a deed of company arrangement.
“Our priorities are just to defer the wind-up app[lication] to try and save it and to try to give Mr Cross an opportunity to secure support from who he needs to… The creditors understand the high prospect they won't get a return if the company doesn't have any concerts.”
Dwayne Cross has not returned theMusic.com.au call this afternoon. Co-founder John Denison is no longer involved with the event and confirmed today that he sold his stake in May last year.
The mountain of debt is particularly intimidating given the festival does not have any assets apart from intellectual property, including trademarks.
This week's new sets include the return of UK's Foals plus local acts Last Dinosaurs, The Snowdroppers and The Paper Kites.