An Austrian bank is being investigated for making half-a-billion Euros disappear. CTS Eventim's Austrian business, Barracuda Music, currently cannot access its deposits.
Barracuda Music, Austria's biggest concert and festival promoter, got acquired by CTS Eventim late last year, Pollstar revealed at the time. The company holds some €34 million ($40 million) in deposits with the bank in question, Commerzialbank Mattersburg.
The bank has been prohibited from conducting business in mid-July, when it had become clear that it was engaged in shady dealings. It had artificially inflated its balance sheet by roughly half-a-billion Euros. Investigators are currently figuring out all the false accounting entries, according tolocal press
Which means Barracuda's funds are currently not accessible. CTS Eventim, however, has assured its investors that the progress of its subsidiary was safe.
"Thanks to a comprehensive financing plan, the activities of the Barracuda Group are well protected, particularly its two flagship festivals, Nova Rock and Frequency," a company statement reads.
Klaus-Peter Schulenberg, CEO of CTS Eventim, commented: "Even in times of Corona, we are pursuing a long-term corporate strategy and are fully aware of Barracuda’s enormous potential. We are therefore pleased that Barracuda, one of most creative concert promoters in Europe, has been a member of our corporate family since early 2020, which also means a significant investment in Austria, a market that is so important to us.
"The team around Ewald Tatar, Barracuda’s managing director, can rely on us totally, even in these turbulent times. We would like to emphasise at the same time that both CTS Eventim and the Barracuda Group will take any steps that are necessary to protect our rights in respect of the current situation at Commerzialbank Mattersburg."
Barracuda Music CEO Ewald Tatar emphasized, "We are immensely struck by the fast and uncomplicated way that CTS Eventim jumped to our side and are really very glad to have such a strong and flexible company as our parent. We are delighted for hundreds of thousands of music fans from Austria and abroad that we are able to carry on our successful work and that the future of Nova Rock, Frequency and hundreds of concerts a year is secure."
Barracuda Music was founded in 2004, and has grown continuously. The group brings together the activities of various independent concert promoters, including the organisers of the Electric Love, Frequency and Nova Rock festivals.
The company has also been the local promoter for concerts by The Rolling Stones, Ed Sheeran, Bon Jovi, Metallica, Phil Collins, Red Hot Chili Peppers, Elton John, Iron Maiden, Robbie Williams, and many more.
Since 2012, Barracuda has also been the exclusive promoter of concerts at the ancient castle of Burg Clam, a pretty spectacular outdoor venue offering space for up to 10,000 spectators.