Creditors of the Rose of Tralee festival, who earlier this year agreed to accept less than a third of what they were owed, have not yet been paid, it has emerged.
A number of rose selections for the festival, now in its 46th year, have already taken place. The Kerry Rose selection is due to take place shortly.
However, sources denied that the 2004 festival was in serious trouble. It has been on a roller- coaster since last winter when its financial troubles emerged. They blamed the "complexities" of restructuring for the delay in paying creditors.
The legalities of the restructuring announced to save the company from liquidation in January were "extremely complex".
The situation was "identical to the Jeanie Johnston famine ship project" when its company had to be wound up to pave the way for a new structure, according to the sources.
While "technically" the company might go into liquidation with the old company being wound up, the festival did have a future. Paying creditors had taken longer than anticipated, one source said.
Tralee Town Council, radio stations, newspapers, printers, florists, street entertainers and garage owners are owed almost €1 million.
In January the majority agreed to accept 30 per cent of what they were owed under the restructuring.
Un-named businesses in Kerry and other parts of the country pledged up to €200,000. A business group led by Tralee-based corporate planning consultant Mr Anthony O'Gara is leading the restructuring and is to compile a three-year plan. The festival has been allocated €500,000 in State funding in the last two years, but did not draw down a Fáilte Ireland grant of €150,000.
The number of visitors to Tralee for the festival have plummeted in recent years. However, the number of people watching the live RTÉ television shows has risen, with 1.8 million viewers attracted annually.
Plans to build a centre which would host the festival and other events are under way by the town council under a public-private partnership.