A jazz festival has sent a letter to its creditors saying it has suffered "a significant loss" and will be suspending all payments for a period.
Brecon Jazz attracted acts including Cerys Matthews, Joan Armatrading and Courtney Pine to its 25th annual festival which took place in August.
In the letter the festival says it hopes to have a full picture of funds available to it by the end of October.
It also asks creditors to send the amounts owed to them to their office.
In the letter, which is dated October 2008, the HSBC Brecon Jazz Board said it was taking professional advice and speaking to key stakeholders to establish whether there were ways in which it could obtain additional funds to cover the deficit.
"The advice we have received is that all creditors must be treated equally and that no individual creditor should be preferred over another," the letter states.
Maximise funds
"Therefore, for a limited period, we are suspending all payments till such times as we have a full picture of the funds available to us and the extent of our liabilities."
The board goes on to say that it was making every effort to obtain payment from its own debtors to maximise the funds available to make payments.
The letter states: "The company wishes to apologise to its contractors and other supporters for this unfortunate state of affairs and asks for their continued patience in what is a difficult time for all."
The festival has become a major event on the UK jazz calendar and is renowned for its street music as well as its concert line-up.
It regularly attracts around 70,000 revellers to the mid Wales town and receives funding and assistance from a number of organisations including the Arts Council of Wales, HSBC, Powys council and the Brecon Beacons National Park Association.
A Welsh Assembly Government spokesperson said it was aware of the current funding difficulties being faced by Brecon Jazz.
The heritage minister will discuss the matter with the Arts Council of Wales at their next meeting, the spokesperson said.
"Whilst the Welsh Assembly Government does not provide direct financial support to Brecon Jazz, the event does receive funding of almost £125,000 via the Arts Council of Wales.
"As one of a number of funders, the Arts Council of Wales is currently working with the festival to consider viable options for the future."
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