“The company has only 60,000 kronor in assets,” Kalmar county bankruptcy administrator, Bengt Stridh told the local Barometern newspaper, referring to the Rockparty subsidiary which has debts of 14.8 million kronor when it filed.
Hultsfredsfestivalen AB was one of three companies within the Rockparty concern which filed for bankruptcy in June ahead of the 25th anniversary festival.
The firm was formed last winter to work with securing the finances for the festival which has battled financial difficulties in recent years. The firm is 49 percent owned by Hultsfreds kommunala industriaktiebolag, a municipality-owned firm.
The remainder of the company’s debts are for the most part made up of artist fees.
Bengt Stridh told the newspaper that the chances of the 5,000 ticket-holders receiving any refund once an auction of the firm’s assets is completed were “very small”.
The other firms involved in the Rockparty concern are Rockmetropol i Hultsfred AB, with debts of 7.8 million kronor, and subsidiary Music Linc Hultsfred AB with a deficit of 380,000 kronor.
The Hultsfred Festival 2009 attracted 23,000 visitors but due to unfavourable US$ exchange rates made a loss after paying the artists. Attempts were made to ensure that break even was achieved at an earlier stage in 2010 but weak ticket sales led to the cancellation of the event just two weeks ahead of time.