Adelaide ratepayers to meet Soundwave’s $75,000 debt

City of Adelaide ratepayers have been left to foot a $75,000 bill after a decision was made to waive a debt owed to it by the now-defunct Soundwave festival.

Last held in Adelaide’s Bonython Park in February, 2015, the organiser - Soundwave Festival Pty Ltd, owned by controversial music promoter AJ Maddah - subsequently failed to pay relevant event fees.

Soundwave Festival Pty Ltd which folded under horrendous debt, has managed to provide liquidators with a mere $0.02 for every dollar the festival owed.

Liquidators appointed to recover the debt in 2016 confirmed earlier this year that they anticipated no further payments, with the Council now agreeing to permanently write-off the remaining $75,391 as bad debt.

Commenting on the write-off, an Adelaide City Council spokesperson said the debt would not affect the chances of future festivals securing event spaces in the city.

The spokesperson explained “the City of Adelaide plays a key role in events that aim to increase visitation and cultural activity year-round.

“While the outcome of the Soundwave Festival event was disappointing, the council will continue to support applications for events that encourage a wide range of cultural experiences throughout the city.”

Adelaide City Council is one of a number of creditors affected Soundwave’s 2016 demise. Debts are understood to have reached up to $25 million – including, at one point, outstanding payments to some of the world’s biggest rock acts including Soundgarden, Slipknot and Smashing Pumpkins, as well as traders, catering, security and other suppliers that backed the festival.

When asked if the Council would work with AJ Maddah on any more festivals, the spokesperson said it would “assess any future applications from event organisers on their merits”. 

Image: Soundwave in Bonython Park in 2013.

18th December 2015 - LIVE PERFORMANCE AUSTRALIA DEMANDS THAT TICKETING COMPANIES PROTECT CONSUMERS

17th December 2015 - SOUNDWAVE CANCELLATION LEADS TO TICKET REFUND DISPUTE 

16th December 2015 - NO SOUNDWAVE IN 2017, DOUBTS OVER JANUARY 2016 FESTIVALS

7th October 2015 - SUMMER OF MUSIC TO ROCK BRISBANE SHOWGROUNDS

20th February 2015 - SOUNDWAVE PARTNERS WITH VIAGOGO TO SQUEEZE SCALPERS