From staff reports

LEXINGTON, Ky. - It was the Mega Fest, but then it became a so-called "megaflop."

Now, organizers say they are "megapoor." The Kentucky-based Tri-State Mega Festival and Fair Corp. has filed for Chapter 7 bankruptcy protection in Eastern District of U.S. Bankruptcy Court in Lexington, Ky., according to a published report in the Ashland, Ky., Daily Independent.

The corporation's bankruptcy petition listed assets of $2,921 and liabilities of $220,828, according to the report. Under Chapter 7 rules, the corporation would be released of its debts, but would be required to hand over property. The filing would delay action through lawsuits to collect on the corporation's debts.

One entity that provided entertainment during the Mega Fest has already filed a lawsuit against the festival's organizers.

MacKay Marketing & Entertainment, of Bridgewater, Mass., filed a suit June 23 in Lawrence County Common Pleas Court, seeking $106,295 in damages, as well as a jury trial for the case.

In addition to the Tri-State Mega Festival and Fair Corp., a non-profit group incorporated in Kentucky, the suit named the board of directors, Rick Clark and Gary Stevens of 1131 Terry St., Raceland, Ky., and Casey Kerns of 7464 County Road 15, Chesapeake. The suit seeks $100,000 in punitive damages and $6,295 in compensatory damages. The suit cites breach of contract, interference with contractual and

business relationships, fraud in the inducement and other complaints that have allegedly damaged owner Gordon MacKay's ability to do business.

The Mega Fest was originally advertised as a five-day event - June 4-8 - but was ended a day early after poor attendance and rain left organizers scrambling to pay many of the acts.

While some of the bigger musical acts that Gordon MacKay booked, including Trick Pony, Joe Nichols and Jennifer Hanson, were paid, many of MacKay's other performance acts were only paid a fraction of what they were owed. The suit also alleges these acts are still owed $55,075.

Meg Fest organizers could not be reached for comment on the bankruptcy filing.