Promoters of the Iceland Airwaves festival have denied speculation that it has become the latest victim of the country's economic crisis by pledging it will go ahead later this year.

The event's organiser Mr Destiny closed its offices on the island last year amid whispers of unpaid artist fees and rumours that the festival's 2008 10th anniversary would act as a swansong for the gathering.

However, festival director Steini Stephensen tells Music Week that plans for 2009 are already being ...