According to court documents, the festival's organizers admit they booked too many high-priced acts and most of them required payment up front.
The festival was also overstaffed, and a dispute with a food vendor left it unable to pay workers and other vendors.
Despite $11 million in ticket sales, they still owe $4.5 million and only have assets of $600,000.
A new group of producers has taken over and is planning a second festival at the end of May.
