On The Record

  • Revenue Commissioners lodge petition to wind-up POD Concerts

    June 26, 2009 @ 9:49 am | by Jim Carroll

    Simon Carswell reports in today’s paper that the Revenue Commissioners have lodged a High Court petition seeking the winding-up of POD Concerts, the company behind the Electric Picnic festival. This is on foot of an outstanding VAT bill for €800,000 and the case is due to be heard on July 13.

    However, the report and a statement on the Elecric Picnic website stresses that the move will have no effect on this year’s Electric Picnic festival (which is now owned and run by EP Republic, a joint venture between POD and Festival Republic), any upcoming shows promoted by the company (such as Leonard Cohen in The O2) or any of the Pod’s venues.

    Per Simon’s report, “POD Concerts said it had been in talks with the Revenue and its creditors with a view to paying its debts and “sought time” from the Revenue “in order to execute this….This has not been forthcoming from them, even after paying them a substantial down payment in March and putting a payment plan to them for full execution over 16 months”.

    There was no statement from the Revenue about this.

    • 17 Comments »

    1.
    June 26, 2009
    10:23 am

    What will if affect, so? Does it mean that current POD concerts are fine but that if they are wound up then there will be no more gigs promoted by that particular company in the future?

    Comment by Noise Annoys
    2.
    June 26, 2009
    11:58 am

    Noise - As far as I can see, Revenue are moving to wind up the company because they are owed money. The case will be heard on July 13. But POD will probably move between now and then to stop this petition and, if the judge rules that they are making enough of an effort to pay off Revenue (they had already paid €500.000 in March), he or she may not agree to the winding-up.

    Then again, there are probably other creditors so who knows?

    I must stress, though, that this comment is written from a non-expert pov - I would welcome any insolvency experts reading OTR to pitch in here. I’m sure there are lots of insolvency experts reading OTR during their tea-breaks.

    Comment by Jim Carroll
    3.
    June 26, 2009
    12:52 pm

    non-payment of VAT is effectively a loan from the govt. hard to have sympathy for them in the current climate.

    Comment by unknown convict
    4.
    June 26, 2009
    3:55 pm

    mmm. I don’t think this will be as straightforward as the Simon’s article intimates.Question I’d be asking is why the need to set up a new limited company(EP Republic) to oversee EP09. Festival Republic just bought Aikens share so why the need to shift companies. The revenue could see this as a cynical move to bury liabilities in POD Concerts yet continue trading under POD 2 Ltd. This practice was rampant in the Irish Construction Industry over the last 10 years. The only real punishment to the directors of a company who liquidated due to tax debts was to be banned from being a director of another company for 6 years. The Limited company is the legal entity and therefore the ower of the debt, not the directors. However, the revenue are seriously cracking down on this behaviour of late. The revenue could argue that the directors did not conduct the business in accordance with the companies act (Not paying VAT bill is a breach of this act). If they judge agrees then the directors could be held personally responsible for the debt.

    What bets Festival Republic buy POD’s remaining stake in EP for mmm, I dunno, 800k?

    Comment by CD
    5.
    June 26, 2009
    4:00 pm

    CD - I think it’s important to point out that Simon’s piece did not make intimations of any sort. It was a straightforward news report of the facts - ie Revenue issue petition, date set for High Court hearing, monies outstanding, POD’s response, no word from Revenue about this response. Next innings will be July 13 in the High Court - I expect I’ll see you there too

    Comment by Jim Carroll
    6.
    June 26, 2009
    4:08 pm

    Sorry, I should have said “not as straightforward as PODs response intimates”. As for July 13th; I’ll be busy listening to Joe Duffys special on Oxegen.

    Comment by CD
    7.
    June 26, 2009
    4:21 pm

    As for July 13th; I’ll be busy listening to Joe Duffys special on Oxegen.

    I bet it’s already in the book

    Comment by Jim Carroll
    8.
    June 26, 2009
    4:25 pm

    One wonders if there will be cut back in facilities at EP to save on costs.

    Comment by JC
    9.
    June 26, 2009
    4:49 pm

    JC - Very hard to cut significant costs on facilities. Bands are the main expense (and I doubt Flock Of Seagulls are too dear). If ticket sales are bad which I suspect they will be, they should really consider day tickets. I know so many people that would like to go for a day but not 3 and I’d imagine there’d be a lot more people in the same boat, especially considering the older, non camping fans that are the demographic EP is aimed at. “Bums on seats” as they say.

    Comment by CD
    10.
    June 26, 2009
    6:44 pm

    JC & CD - I’m with CD - it will be on the talent and that’s already happened - i’ve heard nothing about a dance tent to replace the Bodytonic boys, for instance

    I think the “day ticket” idea - and also the idea of a deposit scheme a la Oxegen - should have been considered. I mean, Latitude, Festival Republic’s UK “Electric Picnic”, has day tickets.

    That said, though, remember there are still tickets on sale for Oxegen, despite the day tickets and deposit scheme. It’s hard weather out there right now for live music pimps.

    Comment by Jim Carroll
    11.
    June 26, 2009
    8:19 pm

    I agree on the day tickets - that would be great. My facilities comment was more aimed at the campsite area’s, less toilets & security is my main concern. Plenty of rumours about contractors not being paid yet from last year’s event.

    By the way a little birdie well placed to know told me that ticket sales are at the 14k mark. Day tickets are doing steady business for Oxegen - it’s the camping ones that have taken the hit. So I’m told anyway.

    Comment by JC
    12.
    June 27, 2009
    5:04 pm

    Jim: Electric picnic confirmed that they would be bookign their own dance tent this year on their facebook page and also mentioned the likes of erol alkan, moderat and simian mobile disco will be playing it. it will be in the main arena area this year as well, you’ll be happy to hear aeroplane have confirmed themselves for it on their myspace page

    Comment by tl
    13.
    June 27, 2009
    7:09 pm

    tl - Aeroplane are also “playing” (ie playing records) at Oxegen. I hear there are some more interesting adds to be announced for EP in coming weeks.

    Comment by Jim Carroll
    14.
    June 28, 2009
    5:04 pm

    I see that today’s Sindo reports that Festival Republic owns a 61 per cent share of EP Republic - the company that now runs Electric Picnic. John Reynolds owns the rest. I’m pretty sure it was previously reported that it was a 50-50 split. So in the future, can we expect to see the POD outfit having less of a say in how Picnic is run?

    Sindo piece: http://www.independent.ie/national-news/picnic-safe-despite-tax-row-1794650.html

    Comment by Eoin
    15.
    June 29, 2009
    11:45 am

    I heard from someone in the know that the POD - Aiken split was never 50:50. It was always more JRs thing.

    Comment by bb
    16.
    June 29, 2009
    2:35 pm

    looks like that’s the end of POD:

    http://www.thepost.ie/post/pages/p/story.aspx-qqqt=IRELAND-qqqm=nav-qqqid=42768-qqqx=1.asp

    Comment by bren
    17.
    June 29, 2009
    8:28 pm

    eoin/bren - thanks for the links

    bb - i think Eoin is refering to a perception that the split between POD and Festival Republic for the Electric Picnic was 50-50. Aiken Promotions never owned 50% of the Electric Picnic

    Comment by Jim Carroll

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