Fyre Festival attendees stand to recover almost nothing from bankruptcy
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It’s the bankruptcy equivalent of a cold cheese sandwich.
The trustee overseeing the bankruptcy of the disastrous Fyre Festival has filed court papers seeking permission to start distributing the funds that have been recovered in the wake of the musical jamboree’s famous flameout in 2017.
But in more bad news for jilted ticketholders, there’s not a lot of money to go around, according to documents filed in Manhattan bankruptcy court.
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After four years of trying to recoup money from the likes of Kendall Jenner and Emily Ratajkowski — who were paid hundreds of thousands of dollars to promote a festival that never took place — the Fyre Festival’s bankruptcy trustee, Gregory Messer, has told the judge that he’s collected a measly $1.4 million.
After subtracting costs of roughly $1.1 million, including payment to Messer and his legal team, there will be just $300,000 left for creditors, court papers show. That will leave less than 4 cents on the dollar for the unsecured creditors, including ticketholders, who claim they are owed more than $7 million, Messer said.
It’s the latest sad twist in a bizarre tale that kicked off in 2017 when Billy McFarland, now a convicted con artist, teamed up with rapper Ja Rule to sell tickets to a series of concerts they billed as exclusive events that would double as exotic getaways for the jet-setting crowd.
Tickets were sold for $1,200 each with package deals that cost up to $100,000, according to court documents.
McFarland, who is now serving six years in prison for fraud, reportedly raised millions from selling tickets, but allegedly spent the money largely on himself and to promote the festival that he later cancelled.
Instead of luxury food and accommodations, the largely Millennial crowd found themselves eating cold cheese sandwiches and living in FEMA tents. The musical acts bailed and the models, it later emerged, had failed to disclose that they were paid to talk up the event.