Hypervibe, the company which organizes the Country and Rock USA music festivals in Wisconsin, is going out of business.
The company posted to the Facebook pages of both music festivals Monday afternoon, as well as its website, saying the Chapter 7 bankruptcy filing is expected to happen within several weeks, and the process will move on from there.
According to the Facebook post, the company worked with its legal team to figure out how to refund remaining assets/cash to ticketholders, and stated they believe the best and most cost efficient way to do that is through a bankruptcy proceeding.
The post goes on to state the Bankruptcy Code provides a priority to “deposit” or “prepaid” claimants, which would be ticketholders. It then says the process will allow assets to be turned over to a bankruptcy trustee to then fund priority claims, and then to general claims, and will then likely result in what the company says is a “significant dividend to be paid to ticketholders.”
As Action 2 News previously reported, Country USA and Rock USA were canceled in early June after the company received advice from the Winnebago County Health Department due to concerns about large crowds and the coronavirus pandemic.
Ticket holders later reached out to Action 2 News, saying they hadn’t received a refund yet from the company.
The post mentioned the refund frustration, saying “Although it may not be apparent, getting money back into your pockets has been, and is still our number one priority.”
In addition, Hypervibe officials wrote they asked their legal team to provide a letter and/or e-mail, as well as a bankruptcy claim form to all ticket claimants with instructions on how to fill the claim out, and also where to send it.
The company then stated the Bankruptcy trustee, who will be appointed when the filing is done, will act to liquidate assets and pay claims.
Hypervibe team officials wrote they have individually listed the ticketholders.
You can read the full Facebook post below.
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