Radio companies owed thousands as promoter goes into liquidation
A number of radio companies are owed money as promotions and event planning business, Abstract Entertainment enters liquidation.
The promoter and event planning business owes close to $700,000 to 95 individual creditors spanning radio networks, ticketing companies, musicians, venues and promoters.
Its related entity, Abstract Touring, is still trading, and recently announced the Belinda Carlisle Tour of Australia for February 2022.
Abstract Entertainment largely blamed COVID-19 for its deteriorating financial performance and position which led to the self-imposed wind up.
Australian Radio Network (ARN) is owed $32,338.80, Nine Radio is down $23,716, and Southern Cross Austereo (SCA) $15,247.10.
Other radio networks hit include 2DU Western Broadcasters ($4,400), 2HD Broadcasters ($2,772), 2RE Max FM ($1,320), 2ST South Coast Tablelands ($544.50), 94.1FM Gold Coast Community Radio ($6,886), East Side FM ($1,485), 2CH ($4,185) and Central Coast Community Radio ($2,227.50)
In the Report to Creditors, seen by Radio Today, the company noted that under normal circumstances, it would receive royalty fees and commissions from its related entity Abstract Touring. In this instance, however, Abstract Entertainment incurred various expenses associated with the planning and promotion of concerts and shows which were planned for 2020. In the meantime, all sale and pre-sale funds were held by a ticketing agency, and could only be released once the concert or show had been held, the creditor’s report said.
“Due to domestic and international Government restrictions implemented following the COVID-19 pandemic, the concerts and shows were all delayed and/ or cancelled. As a result, the company was unable to generate revenue and has since been dormant.”
It said the level of ongoing uncertainty surrounding the rescheduling of concerts and shows, and the money it didn’t receive in early 2020, combines to mean the company will not recommence trading operations during liquidation.
The liquidator, Aston Chace Group, has been paid $10,000 plus GST to cover the initial remuneration and expenses associated with the liquidation of the company.
Its 95 creditors are owed $696,382.12.
The largest of these is Jally Entertainment, which is listed as $106,938.51.
Ticketing companies have also been affected with Ticketek owed $1,196, TEG Digital down $4,400, and Ticketmaster listed at $3,850. Eventfinda AU is owed $3,531.
Other large creditors include the Daily Press ($100,711.90), Estellar Publicity and Promotions ($16,970.22), and APRA ($9,946.49).
Musician John Waters is also owed $23,716.
The company’s sole director Rocco (Roy) Ortuso noted that he and his spouse may also have a claim against the company in relation to unpaid employee entitlements.