Judge rules against AEG Live, Electric Forest caught in the crossfire, may still be safe for 2014
Electric Forest continues to be caught in legal crossfire after an Oceana judge ruled against AEG Live and Electric Forest organizers in a hearing held on February 24th. Judge Terrence R. Thomas denied the motion for intervention filed by AEG Live along with a motion for a temporary restraining order and preliminary injunction. Had Thomas sided with AEG it would have barred Antler Bar Amusements LLC and Double JJ PropCo LLC, along with Progressive Resorts LLC, from denying the 20-year festival lease that Progressive signed with Madison House in 2010.
Following the hearing, AEG’s lawyers argued that the lease was part of the purchased collateral since ABA acquired Progressive’s assets in November. AEG and Madison House were never made aware that a sale would void their 20-year agreement and the promoters moved forward with the festival as planned, selling over 25,000 tickets.
Lawyers on ABA and Progressive’s side pointed fingers back at AEG and Madison House, asserting that they were given notice of the resort’s sale in the fall and could have intervened earlier before the property changed hands.
The good news? Madison House co-partner Jeremy Stein said the proceedings would not affect this year’s Electric Forest Festival.
“We’re excited to be plowing forward and I think everyone’s intentions are for the festival not only to happen to be the best one yet.”
Via: MLIVE
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