The festival grew from a community event to one for thousands of visitors
The company behind Brecon jazz festival has officially gone into liquidation at a creditors' meeting in Cardiff.
But it could be at least six months before any individuals or businesses owed money are paid, said Vaughan Jones of insolvency firm BN Jackson Norton.
Nine creditors attended the company's city centre offices, and are now expected to submit claims against the failed business.
Mr Jones was also officially appointed the liquidator at the meeting.
The company behind the festival ceased trading last month after suffering a "substantial loss".
Liquidator Mr Jones said: "The company has officially gone into liquidation and I have been officially appointed the liquidator.
"Nine creditors attended a meeting at our offices in Cardiff and it lasted about an hour.
"They now have the opportunity to submit claims, but some have already.
"We will take time to realise the company's assets, but it could be six months before a dividend is declared."
A number of groups have shown an interest in staging the jazz festival later this year.
The Arts Council of Wales, the organisation responsible for funding and developing the arts, is co-ordinating plans to rescue the event.
Other interested parties keen to stage it have until midday on 19 January to submit an application.
The festival, held every August, celebrated its 25th anniversary in 2008.
In the past it attracted performers including George Melly, Humphrey Lyttelton, Jools Holland and Amy Winehouse.
But it ran into financial difficulties after poor weather hit ticket sales.