The company behind Fyre Festival, after being unable to pay employees, dealing with lawsuits, and borrowing money, has now claimed bankruptcy. According to Rolling Stone, the decision was made at the U.S. Bankruptcy Court, where three lenders were trying to make Fyre Festival LLC get a bankruptcy staring in July.
Billy McFarland launched Fyre Media in order to book artist and other entertainers, then later created the festival with rapper Ja Rule. With the many problems that the festival groups such as fraud committed by McFarland, there has been a push to end the journey the festival has taken.
The company did not claim bankruptcy during July because they were hoping to find out what happened to the $530,000 loan for the festival and whether it could be returned. With this situation, Robert Knuts , the lawyer in support of the lenders, stated “If the money was burned up in the Bahamas we’re not going to be able to recover it but at least we’ll know where it went”.
The bankruptcy case was ran by Judge Martin Glenn. During this process, the judge ordered the company to prepare documents showing who needs to be given their money. It was revealed that more than 20 people gave a loan, a total of over four million dollars. As a result of the bankruptcy, a trustee will be taking control over the festival, having access to the business records and working to recover the money lost, for the creditors. Along with this, this new control is planning to possibly pushing Fyre Media Inc. into bankruptcy.