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Cameo Clips
Bankrupt Festival Organizer Can Recover Buyout Payment It Made to Co-Founder
The U.S. Bankruptcy Court for the Northern District of California decided that the bankrupt organizer of the Bottlerock music festival could recover a prior payment it made to buy out one of the principals of the company. In re BR Festivals LLC, 14-10175.
BR Festivals formed to present a May 2013 music festival in Napa, CA. Confident of success and with funds from new investors, in April 2013 BR Festivals paid original manager and co-founder Jason Johnson $3,025,849 to purchase his share of the company. But as Bankruptcy Judge Alan Jaroslovksy described it, the inaugural edition of Bottlerock 'was doomed to be a financial failure from the very start, due to the lack of experience of the managers and undercapitalization. ' However, the ultimate failure of the concert was masked for a considerable time by advance ticket sales, optimistic projections and wishful thinking.'
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