Woodstock 50 investors must return $18.5 million after court order
However, the old investors are now required to pay a large sum of money to the festival.
To backtrack, this all started when Dentsu announced that the festival was cancelled.
Woodstock 50, L.L.C. claimed that the company violated their agreement by doing so. Now, according to court documents, Woodstock partially won the case.
The judge ruled that Dentsu did not have the right to announce the festival’s cancellation, so it is allowed to continue.
Originally, the court ruled that Woodstock 50 “has not met the high burden entitling it to a mandatory injunction.” This meant that Dentsu did not have to return the money to the organizers.
Now, they have to pay back the $18.5 million. Woodstock 50 lawyer Marc Kasowitz made a statement about the big step.
“Today, in an important step, Justice David Friedman of the Appellate Division, First Department, issued an order requiring that Dentsu and Dentsu Aegis deposit into escrow by Friday at 5:00 p.m. the $18.5 million that Dentsu swept from a Woodstock 50 Festival account. Justice Friedman issued this order pending the decision of a five-judge panel on Woodstock 50's motion to return the funds to the Woodstock 50 Festival account.”
As previously stated, the festival now will be financially backed by American investment bank Oppenheimer & Co.
In a press release, John Tonelli, head of Debt Capital Markets & Syndication at Oppenheimer, expressed the company is thrilled with the new partnership.
“We are thrilled to be on board for this incredible weekend of music and social engagement,” Tonelli says. “We believe in Woodstock as an important American cultural icon and look forward to its regeneration in the green fields of Watkins Glen this August with all of the artists on the remarkable lineup.”
Woodstock 50 still hasn’t replaced former producers Superfly and are waiting on the finalization of permits.
Despite all the issues, festival organizer Robert Lang says tickets could go on sale within the next two weeks. He revealed in a radio interview that weekend passes will cost less than $400. An on-sale date could be coming within the next 10 days.
What do you think about this step in the Woodstock 50 case? Sound off in the comments below!
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