PLEDGEMUSIC, THE fan-to-artiste crowd-funding platform, is “unlikely” to pay the money it owes acts and project organisers, according to what appears to be a creditors report obtained by US industry publication Variety.
A company winding-up order was made against Pledgemusic.com Limited in the UK’s High Court of Justice In July and the Official Receiver was brought in to liquidate its assets.
The Receiver’s report revealed that Pledgemusic.com Ltd’s debts totalled just under £7.5 million ($9.62m) and that creditors claims were expected to rise.
In the 21 October report, Variety says Official Receiver S Rose toldcreditors, “I do not anticipate that I will need to contact you again because there is unlikely to be a payment to creditors in this case, if that changes I will contact you”.
The report suggests that invested funds were not kept as “trust monies” and so were deemed to belong to the company, not the investors or intended recipients, which was not a problem for either side while the money was flowing.
A decade of operation saw PledgeMusic handle investment for more than 45,000 projects involving artistes such as The Libertine, The Enemy and Stiff Little Fingers.
In 2014, online publication Digital Music News estimated that the platform had raised around $32m by that point.