FOX VALLEY AREA REGIONAL NEWS: Calumet County, Fond du Lac County, Outagamie County, Winnebago County

Company behind Country USA, Rock USA to file for bankruptcy

Local News

(WFRV) – The concert promoter behind Country USA and Rock USA is filing for bankruptcy.

According to posts on both Country USA and Rock USA Facebook pages by the Hypervibe Team, they have “attempted to negotiate with our creditors, and have whittled down the pool of claims against our scarce resources we have available.”

“We have worked with our legal counsel to choose the best method by which to refund the remaining assets/cash to ticketholders and believe that the best and most cost efficient way to do this is through a Bankruptcy proceeding.”

In late June, after both Country USA and Rock USA were canceled, the Hypervibe Team issued a statement, saying they, “as have virtually all event promoters, been severely damaged by the fallout resulting from the COVID-19 pandemic.”

According to Monday’s release, there are many ticketholders who have not received their refunds.

Read the full statement below:

To Ticketholders of Country USA and Rock USA:

Many of you have attempted to contact us regarding refunds for prepaid tickets for the 2020 concerts. We do understand your frustration in not being able to obtain the refunds for your tickets quickly. We do want you to know that we have been trying to deal with this horrible and unforeseen disaster since it became apparent that we could not hold the events as planned. As you are aware, the Governor banned such events, and in hindsight it becomes apparent that to proceed with the events would have been irresponsible in light of the COVID pandemic.

Unfortunately, we did not and could not have foreseen this turn of events. There is no insurance for what can be described as an act of God.

We are a small, family-owned, independent concert promoter. We make financial commitments years in advance to the talent and our vendors. We have ongoing leases for the premises and equipment that we use to host the concerts, in addition to a year-round staff that works hard to put the events together.

While we believe we exercise prudent financial management, we don’t have deep pocket backers nor the financial resources to weather a total collapse of the season. Indeed, as it slowly became apparent that it would be impossible to host the 2020 events, we cut back on all expenses, (including employees), and attempted to negotiate with our creditors to reduce our debt.

In fact, we reached financial agreements with our largest creditors, and have whittled down the pool of claims against our scarce resources we have available.

Although it may not be apparent, getting money back into your pockets has been, and is still our number one priority. We have worked with our legal counsel to choose the best method by which to refund the remaining assets/cash to ticketholders and believe that the best and most cost efficient way to do this is through a Bankruptcy proceeding. We have been informed the Bankruptcy Code provides a priority to “deposit” or “prepaid” claimants, aka you, the ticketholders. This process will allow the assets turned over to a bankruptcy trustee to primarily fund your priority claims, prior to any general claims being paid, and will likely result in a significant dividend to be paid to ticketholders.

The trustee will also investigate the use of our funds leading up to the filing to ensure that only legitimate claims were paid and that there was no “raid” on the checkbook by management. The Bankruptcy Code provides tools to reclaim or claw back any such transfers – but there were none. However, this will provide assurances to you that the wind down of the business, as unfortunate as it is, has been a fair and transparent process.

Obviously, we have lost our business, which we grew into what we believe was a premier experience for our concertgoers. We are heartbroken by the events which have caused this horrible situation. We also care about our loyal patrons, for without them, there wouldn’t have been so many years of these great events. We are trying to do right by our loyal supporters and get you a refund, to the extent possible, quickly and equitably.

In order to make the process easier for all of our ticketholders, we have asked our counsel to provide a letter/email and a bankruptcy claim form to all ticket claimants with instructions on how to fill the claim out and where to send it. We are hopeful that the Bankruptcy trustee, who will be appointed upon the filing, will act quickly to liquidate assets and pay claims. We have taken pains to individually list the ticketholders.

For what it is worth, we are proud of the over 30 years of events we have hosted here in Oshkosh and the Fox Valley, are grateful to all of the people who supported us, especially those who came to hear the music, and have few regrets – with the exception of how this ended.

We expect the Chapter 7 filing to occur within several weeks and the process will then move, hopefully, quickly.

Thank you all for the support and amazing memories over the last 25 years. We ask everyone to spread love and positivity in a time when this world needs it.

In Wisconsin, a Chapter 7 bankruptcy is a liquidation.

Latest Stories

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Don't Miss

More Don't Miss

Coronavirus News

More Coronavirus

Trending Stories

Your Local Election HQ

More Election

Local Sports

Hallum's hat trick leads Gamblers past Chicago

Conference contenders dominate in girls basketball openers

Phoenix set to begin Will Ryan Era against Minnesota

High School Sports Xtra: Girls Basketball primer, Local 5 Top 5

High School Sports Xtra: Football playoffs wrap up with Level 2

Xtra Point: Level 2 High School Football Playoffs