Businesses claim they are owed thousands of pounds following two high-profile concerts at Caledonian Stadium in Inverness last month.
Thousands of people attended the events featuring singer Andrea Bocelli and Duran Duran on successive nights in July.
It is now alleged that firms, including local suppliers, have been left out of pocket as bills have been unpaid.
They are said to be due sums ranging from hundreds to tens of thousands of pounds.
There are concerns the company running the events could go bust, having been advised to work with an “insolvency practitioner”, and that not all money will be repaid.
How have creditors reacted?
A letter has been sent to more than 30 creditors by Dundee-based Ascot Tax on behalf of Inverness Caley Thistle Concert Company Ltd.
This is a separate limited company and is said to be not linked to the football club.
In a statement, the company said “anomalies” in production costs were noticed before and after the concerts.
These are being investigated, while the company is also taking legal advice to look into matters further.
One of the concerts creditors is Kai Logan, who owns KBE Events Services in Inverness.
He said: “We are due tens of thousands of pounds. We have gone above and beyond to help them.
“We pulled together many local suppliers and freelancers to make the event happen and they haven’t paid us.
“So this really impacts our business and potentially the future working with our suppliers.”
Another local creditor, who asked not to be identified, said: “I am not sure if we are getting paid imminently or at all.
“It’s embarrassing for the city. I don’t think the concerts ran smoothly. I hope those involved will live and learn and sort out local suppliers.”
The statement from ICT Concert Co reads: “In the run up to the July concerts held at Caledonian Stadium it became apparent that there were several anomalies in relation to the production costs which were being submitted or, in some cases, hadn’t been submitted by certain contractors via the independent ‘production team’ engaged by ICT Concert Company.
“Further anomalies emerged the week of the concerts and in the days after.
“Accordingly, ICT Concert Co felt it necessary and appropriate to appoint an experienced forensic accountant to investigate these matters and deal with all financial matters to regulate the affairs of the concert company.”
What have creditors been told?
“This is not in any way suggesting that all or any companies brought in by the independent production team were involved in anything untoward.
“But the company will now follow the process suggested as the situation is investigated and will follow the advice we are given once that investigation is complete.”
In the letter to creditors, Ascot Tax says that during a review of the financial status of the concert company “we have found that, due to the lack of internal controls by the production company, it has exceeded its budget that was agreed by the directors.
“As a result we have advised the directors to seek advice from an insolvency practitioner.”
The letter, signed by compliance director Tom Dyer, states that, as insolvency procedure is expensive and time-consuming, creditors are being advised on alternatives.
A company voluntary arrangement has been recommended which would require the appointment of an insolvency practitioner to oversee the process and an application to the court.
This could take 6-8 weeks just to start the process.
It then advises that the company can enter a compromise agreement with creditors to pay a one off dividend in full and final settlement of liabilities.
Ascot said it has calculated there is funds to pay a dividend of 65% to all creditors.
Such a move would need approval of 75% of creditors with money paid out within six weeks.
Hopes of an early resolution
Mr Dyer said discussions are taking place with creditors.
“The response from creditors has been very positive. I am hopeful this will be tied up in the near future.”
The concerts were a huge coup for Inverness. But at the time of the Bocelli event many audience members were disappointed after being forced to endure lengthy delays.
The main show was delayed after motorists were left in lengthy tailbacks as they battled to find parking.
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