It could spell trouble for Edinburgh Fringe as a whole as Assembly Festival is considered one of the 'big four' producers and accounts for nearly a fifth of the festival.
Who should be responsible for paying back debtors?
The DCMS awarded £22.8m to the trust which was administered through organisations including Arts Council England, the National Lottery Community Fund and National Lottery Heritage Fund. In a letter seen by Sky News, the Scottish Minister for Culture, Europe and International Development, Christina McKelvie, wrote to Culture Secretary Lucy Frazer asking for assistance.
"You're talking about a quarter of all of the festival activities that have happened over the month of August and the planning and organisation that goes into that for a whole year ahead as well, losing Assembly Festival from that group, a key pillar of our festivals will be absolutely devastating to Edinburgh, its festivals and international standing on that issue too."
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