The issuer of a US$1,050,000 million letter of credit (L/C) meant to have guaranteed the earnings of riders, officials and workers at a prestigious US equestrian event says it is not responsible for payment.

Icon categorically denies responsibility for payments because the organisers failed to comply with the L/C terms.

No escrow

Executives of Icon, which describes itself as a media specialist offering a range of financial and corporate barter opportunities, say the L/C specified that the organisers of the Las Vegas World Invitational open an escrow account and deposit cash in it amounting to US$1,050,000.

The organisers, Equus Entertainment, failed to open the specified escrow account and made no alternative arrangements to provide matching funds according to Icon.

Financial obligations

One Icon executive reportedly notified the organisers that no details of the escrow account had been received a fortnight before the event was due to take place. An Equus executive apparently replied that they no longer required the funds.

Cheques made payable to most of the prize winners at the event have bounced. In a separate dispute surrounding the same event, a 90-minute television show based on it has been cancelled because the broadcaster, CBS, says Equus Entertainment failed to meet its financial obligations.

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