The scale of Bluesfest’s financial collapse has been laid bare, with liquidators estimating the festival’s debts could total almost $9 million and warning creditors to expect only a minor return.

A total of 54 companies, including dozens of Northern Rivers businesses, are owed between $1.2 million and $2.6 million.

The company Worrells was appointed liquidator of Bluesfest entities on March 12, just three weeks before the scheduled opening of this year’s festival. Its June 11 report tells creditors they should expect only a “minor dividend”.

More creditors are still coming forward, and Worrells says it is not too late to lodge a proof of debt claim, meaning the final liabilities could increase further.

The largest group of creditors are ticket holders, with more than $5 million in ticket sales outstanding.

Worrells Managing Principal Jason Bettles said festival director Peter Noble operated a number of companies associated with Bluesfest, which is a common way for larger businesses to structure their operations.

Worrells has been appointed liquidator of only two companies — Bluesfest Enterprises and Bluesfest Byron Bay. The Australian Financial Review has previously reported Mr Noble was linked to 25 companies.

“The law treats each separate company as a separate legal entity,” Mr Bettles said.

“So just because one entity incurs a debt — and there might be another entity with the same directors and shareholders — the indebted company can’t just claim the assets of the other entities. That’s not how the law works.”

According to the Worrells report, Bluesfest Enterprises, the company responsible for ticketing, owes unsecured creditors between $5.19 million and $6.21 million.

Bluesfest Byron Bay, which dealt with suppliers and contractors, owes between $1.24 million and $2.60 million.

Combined, the two companies owe an estimated $6.4 million to $8.8 million.

There is approximately $330,000 remaining in the companies’ bank accounts.

Mr Bettles said ticket holders may be able to recover some of their losses through chargeback arrangements with their bank or credit card provider.

“I can recommend the ticket holders seek a refund from the merchant that they purchased through,” he said.

He said the investigation into Bluesfest Byron Bay could take between six and 12 months, while the Bluesfest Enterprises liquidation may be completed within six months.

Any findings will then be referred to the Australian Securities and Investments Commission (ASIC).

Local businesses have told Ballina News Daily they expect to receive less than 10 cents in the dollar and have spoken of the financial and emotional toll caused by unpaid invoices.

Questions over $4 million debt transfer

The Worrells report also highlights the transfer of approximately $4 million in “intercompany loan receivables” between Bluesfest-related companies before the festival’s collapse.

The liquidator noted a series of accounting entries made around November 2025 that reassigned more than $4 million in debts to Bluesfest Byron Bay.

The director, through external accountants, told the liquidator the transfers were part of an internal restructuring designed to simplify the group’s corporate structure, reduce administrative costs and facilitate the winding up of inactive entities.

However, the report notes no formal assignment agreements were executed for the transfers.

“The effect of these transactions was to transfer the Company’s receivables to Bluesfest Byron Bay Pty Ltd however, Bluesfest Byron Bay Pty Ltd has subsequently entered liquidation,” the report states. “As a consequence, the Company’s ability to recover those amounts may have been reduced, thereby potentially diminishing the pool of assets available for distribution to creditors.”

Creditors are expected to receive further updates as the investigations continue.

Earlier story:  Bluesfest scandal deepens as former editors turn on Peter Noble