Creditors of the music festival, owed over $7 million, can expect less than 11 cents in the dollar back as a liquidator investigates transaction made by founder Peter Noble.

A report into the cancelled Byron Bay Bluesfest reveals creditors are unlikely to be repaid the millions of dollars they are owed.

Creditors of the music festival, owed over $7 million, can expect less than 11 cents in the dollar back as a liquidator investigates transaction made by founder Peter Noble.