By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamian creditors are unlikely to benefit from the Fyre Festival being ordered into bankruptcy, Exuma’s Chamber of Commerce chief believes.

Pedro Rolle told Tribune Business that “the amazing mentality” of Exumians, and Family Island residents in general, meant that most businesses and contractors owed money had simply written-off their losses and moved on.

He was speaking after a New York bankruptcy court judge placed Fyre Festival LLC, the company that organised the disastrous Exuma-based music festival, into involuntary Chapter 7 bankruptcy.

New York-based attorney, Gregory Messer, has been appointed as trustee over the company following the successful court petition by three ‘investors’ in the festival promoted by hip hop artist, Ja Rule, and his partner, William McFarland.

John Nemeth, Raul Jimenez and Andrew Newman claim to have invested $530,000 in the debacle. While conceding that they are unlikely to recover their investment, at least in full, the trio believe the Chapter 7 route will uncover how their funds and all Fyre Festival’s other monies were spent, and how it burned through its cash pile so quickly.

Bankruptcy Court judge, Martin Glenn, has now given McFarland two weeks to hand over all Fyre Festival LLC’s financial records and documents.

He must “file all schedules, statements, lists and other documents that are required under the Federal and Local Rules of Bankruptcy Procedure”, which includes a list of all creditors and the money they’re owed, as well as “an affidavit and proposed case conference order”.

Mr Rolle told Tribune Business that it would “be wonderful if some funds are left over” for the benefit of Fyre Festival’s creditors, especially those in the Bahamas and on Exuma.

However, he agreed with the Chapter 7 petitioners that there was likely to be little, if anything, left to recover as all funding had been used up.

“I don’t think there’s going to be any monies left to distribute at the end of it all,” Mr Rolle told Tribune Business. “I don’t think there’s going to be a significant amount of expenditure that was made in the Bahamas.

“I don’t think they invested much of that money in the Bahamas, except where it went to individuals.”

Mr Rolle added that Exuma businesses and residents left out-of-pocket by McFarland, with many owed five and six-figure sums, had largely accepted they will not see that money.

“I don’t think there’s any expectation at this point that anything’s going to happen,” he added. “They’ve accepted it and moved on.

“It’s amazing. That’s the kind of mentality the folks in the Family Islands have. They’re very resilient, and just move on. It’s par for the course.”

The Fyre Festival disintegrated into chaos and confusion in late April, causing potential reputational fall-out for the Bahamas and damage to its tourism brand.

Festival-goers, some of whom had paid $12,000 per head, found that none of the promised infrastructure, accommodations and attractions were in place, while many of the advertised bands had pulled out.