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The Highland Gathering was due to take place at the Royal Highland Centre, Edinburgh, on New Year's Eve, but the event was thrown into doubt last week when the venue pulled out.
Up to 25,000 people were expected to attend the massive party, with Razorlight, Supergrass and The Levellers just a few of the acts booked to play.
A statement issued by promoters U4ria points the finger at a company that was hired to help put the event on.
It reads: "We have done everything possible to prevent the Highland Gathering from being cancelled but we simply do not have the resources or manpower to take over and manage the event on our own.
"We sincerely apologise for any inconvenience caused to all those who are involved with the event and to all those who have purchased tickets. At this stage we will be preparing to take legal action against Extra Mile Events in order to make refunds as soon as possible. All queries will be answered with regards to this but please understand that due to the high volume some delays may be expected."
Ticket holders are asked to direct all enquiries to u4riapromotions@ntlworld.com and not to the Royal Highland Centre or any other company involved with the event.
