We are taking this opportunity to report on the progress of the administration of Elastic Artists Agency Limited. James Tickell and Carl Faulds of Portland Business and Financial Solutions were appointed joint administrators on 7th December 2015.
The company acted as a music agency for artists throughout the UK and Europe.
The agents, who were employees of the company, were based throughout the UK with many working from home and they were responsible for their own roster of artists and promoters.
The business model adopted by the company was that it would act as an intermediary whereby the promoter would book artists through the agents and pay to the company the deposit for the performance. The money would be held in separate client accounts.
At the date of administration there was a shortfall in the client accounts such that the funds in hand could not settle all claims upon the accounts.
Upon appointment the administrators immediately took legal advice over the status of the client accounts held by the company and whether they were in fact trust accounts and should be kept separate from the other assets within the administration.
The most viable solution seemed to be that a trustee was needed to be appointed over these funds to deal with the distribution to those making claims upon the monies, being artists and promoters. We therefore drafted a court application to be appointed as the Trustee over these funds. The court order would provide the necessary authority and set out the terms of the assignment.
The Court hearing was held on Thursday 29th September and the application was successful. In addition, the court provided a 6 month extension to the time limit of the administration.
We have provided creditors with notice of this extension as part of the latest progress report which can be found here
We are writing to those artists and promoters who are affected by the client account shortfall separately and there is no action required at this stage following this update.