Twiin Productions announced Friday that it filed for Chapter 7 bankruptcy and indicated that the “debtor estimates that, after any exempt property is excluded and administrative expenses paid, there will be no funds available for distributing to unsecured creditors.”

Though the bankruptcy court files don’t yet include a full list of creditors, Twiin Productions is known to owe tens of thousands of dollars to companies involved in its West Beach Music & Arts Festival, including MarBorg Industries.

Twins Jeremy and Joshua Pemberton created the event production company in August 2007, according to Secretary of State records. The brothers are originally from Milpitas, according to their Facebook pages, and attended Santa Barbara-area colleges.

They’ve estimated both their assets and liabilities at zero to $50,000, and Jeremy Pemberton is listed as the president.

The company produced four West Beach festivals and the Community Environmental Council’s Earth Day Festival in 2009. The Chapter 7 filing comes six weeks after the Sept. 24-25 two-day West Beach Festival, which almost didn’t receive approval by the city.

According to a news release sent out Friday, Twiin Productions blames the city’s “bureaucratic obstacles” for making this year’s festival unprofitable. Attorney Joshua Lynn, who is representing the twins in all city-related issues, wrote that the city imposed short times for compliance and no valid reasons for the initial permit denial.

“I have said for a long time that if this was a Smooth Jazz Festival, the city would have reacted very differently,” Lynn said in an e-mail to Noozhawk. “All I ask is that everyone is treated the same way as they make it through the permitting process. My observation is that Twiin has been treated very differently, and very unfairly.”

The city Parks & Recreation Department initially denied the permit in May because of complaints regarding parking, citation-worthy behavior from attendees, noise levels and artists’ profanity in the well-attended 2009 concert, city staff said.

Through a series of decisions and appeals, the permit was approved and then denied a final time, which prompted the twins to pursue Chase Palm Park as an alternate location.

Concerns focused on whether the twins could improve on their performance from 2009, but they reiterated their dedication to a safe, profitable event that would draw people to the city, and had every confidence during the meetings, even mentioning applications in back-up cities as a last resort.

“We’ve invested everything into it,” Jeremy Pemberton told the City Council early on. Plans for 2010’s festival included a tripled security budget, more than $180,000 for advertising and intense mitigation plans.

Throughout the meetings with the city, weekend and day-pass ticket sales were available on their event’s Web site.

This year’s festival was a smaller, safer event by most accounts, with far fewer citations and citizen complaints than last year.

The City of Santa Barbara was paid its entire $97,671 owed by Twiin Productions after it insisted on cashier’s checks, since an August check bounced, said Susan Jang-Bardick of Facilities and Special Events.

Fees included paying for police services for the two days of the event, use of the park and buildings, a facility surcharge, various parking and tent permits, sound monitors and a food and beverage concession fee. Twiin Productions may get a partial refund of the $15,000 fee to restore the park’s grass, but that won’t be settled until the eight-week project is completed, Jang-Bardick said.

The company is involved in three lawsuits as well, one of which already has demanded a payout. Ahern Rentals, which was used for this year’s festival, sued Twiin Productions in small-claims court, and the company was ordered to pay the $2,500 after not appearing in court on Oct. 28.

Warner Anderson, a former employee, was sued by the Pembertons and then countersued regarding his time with them. They alleged that Anderson, a senior relations director, breached his contract and took copies of a sponsor list, registry and other information after resigning. They also allege that he used his connections with Twiin Productions to garner the independent contract of producing the CEC’s 2010 Earth Day Festival, after Twiin had been hired in 2009.

Anderson’s complaint alleges Twiin Productions owes him more than $50,000 in overtime, minimum wage and nonpayment of wages.

The company also is entwined in a legal battle with concert promoter Jacalyn Kane, who sued the company last August for fraud, breach of contract and 11 other causes of action. Twiin Productions filed a cross-complaint and accused Kane of slander and breach of faith, among other things.

Noozhawk staff writer Giana Magnoli can be reached at gmagnoli@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk or @NoozhawkNews.

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Giana Magnoli, Noozhawk Managing Editor

Noozhawk managing editor Giana Magnoli can be reached at gmagnoli@noozhawk.com.