Stripe Still Holding Nearly $6.5 Million in Funds Following Festicket Collapse
Photo Credit: Blake Wisz
Payment processor Stripe continues to withhold nearly $6.5 million in Festicket sales more than two years after the latter’s collapse.
Payment processor Stripe still holds around $6.5 million (£5 million) relating to Festicket sales more than two years since the company stopped trading, according to administrators. Stripe has not yet honored a request for the return of Festicket funds since the company went into administration in 2022 and was acquired by US company Lyte, which itself ceased trading just last month.
Stripe says it holds a lien and security interest regarding the funds it holds in relation to things like customer chargebacks. Festicket’s administration asserts they have received claims from potential unsecured creditors of around $30 million, $23 million of which is related to amounts claimed by event promoters.
The payment processor holds just shy of £6 million across multiple currencies relating to ticket and event related sales made by Festicket, compared to the £7.6 million it held when administrators were appointed in 2022. They report that processing by Stripe of chargeback requests received from ticket buyers has “largely ceased.”
Stripe reportedly advised that it is not currently prepared to return any funds as it does not have visibility of the claims that creditors of the company may bring against it in relation to trust claims. Stripe also stated that certain accounts used by the company are actually held under the name of Ticket Arena Limited.
A court ruled earlier this year that Festicket does not hold money on trust for dozens of ticketing agencies and promoters. This enables administrators to apply for directions to make distributions to creditors after two years in limbo — but there are certain contracts amounting to $5 million (£3.9 million) with AEG Presents Limited and other promoters making claims under German law. Those contracts could result in claims for funds held in the administration that could still be subject to trust claims.
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