OSHKOSH, WI (WTAQ-WLUK) — Rock and Country USA ticketholders should not expect to get full refunds for the canceled concerts.
Hypervibe, the company that puts on the events, filed for Chapter 7 bankruptcy last week. Court filings show the company owes fans about $4.5 million, but it’s only left with a fraction of that to pay them back.
Rob Taylor paid $1,000 for concert tickets, but he is only expected to see about a quarter of that back, after the event was canceled.
When asked how Taylor felt about that, he said, “Horrible! I’m still out 800 some plus dollars.”
Todd Vander Velden will be getting about half of what he spent back.
“At least it’s something!” he said.
It may be shocking to most but, in this particular bankruptcy, not getting 100% back is nothing new.
“In a Chapter 7, it’s very, very rare,” said Richard Check, attorney at Bankruptcy Law Office of Richard A. Check. “The only time I see that happen is if there’s a hidden asset that the trustee is able to recover, and usually there’s shenanigans going on.”
According to court documents, Hypervibe says it made less money than what it owes fans.
Its total assets are a little over $700,000 but just more than $620,000 of that is in cash.
“If there are assets that the trustee can liquidate, then there’s gonna be money for all the creditors,” Check said.
But not all will get the same amount back.
“A larger creditor is going to get more money, because they have a bigger percentage of the whole, than a creditor that, let’s say, is entitled to $100,” said Check. “The pie is a lot smaller.”
Court documents don’t specifically state where most of the ticket money went but, when Hypervibe announced its intent to file bankruptcy last month, it also said it makes “financial commitments years in advance to the talent and its vendors.”
“You go from, allegedly, $4 million, and now you’ve only got $600,000 for bankruptcy? Well, okay, so who did you have to pay?” Taylor questioned.
“I think they gotta cover their own…before they cover anyone else,” Vander Velden said.
In one court document, more than 1,300 pages long, close to 10,000 creditors are listed, most of them are fans. And most have received a bankruptcy claim form in the mail.
“If you’re a creditor, and you get a claim form, fill it out and file it with the bankruptcy court, because that’s the only way you’re going to get paid,” Check advised.
A Meeting of Creditors is scheduled for Dec. 16, where Hypervibe, under oath, will have to answer specific questions from the trustee and creditors.
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