Payment processor Stripe is continuing to withhold more than £5m relating to Festicket sales over two years after the company ceased trading, according to administrators.
According to the latest scheduled update from administrators, Stripe has not yet obliged a request for the return of Festicket funds. Festicket went in administration in 2022 and was acquired by US company Lyte, which itself ceased trading last month.
Stripe has asserted that it holds a lien and security interest regarding the monies it holds in relation to, for example, customer chargebacks being claimed against these monies. Festicket’s administrators from ReSolve Advisory Ltd claim that they have received claims from potential unsecured creditors of around £23m, of which £18m relates to amounts claimed by event promoters.
Stripe currently holds a total of £5,391,673 across multiple currencies in relation to ticket and event related sales made by Festicket. This compares to £7,690,705 held when the administrators were appointed in 2022. Administrators said that the processing by Stripe of chargeback requests received from ticket buyers has largely ceased.
According to the administrators, Stripe advised that it is not currently prepared to return monies as it does not have visibility of the claims that creditors of the company may bring against it in relation to trust claims. Stripe has also raised a concern regarding some of the accounts it holds. It has stated that certain of the accounts that the company was using are actually held in the name of Ticket Arena Limited.
AEG Presents among those with claims against Festicket
Earlier this year, a court ruled that Festicket does not hold money on trust for dozens of ticketing agencies and promoters. This paves the way for the administrators to apply for directions to make distributions to creditors after two years in limbo. However, there are certain (non-standard) contracts totalling £3.9m with AEG Presents Limited and three other promoters making claims under German law, in relation to which claims continue meaning that funds held in the administration could still be subject to trust claims.
Share this