The sale order permits Avant Gardner to demolish and reconstruct the Brooklyn Mirage construction, with tear-down prices estimated at roughly $1.5 million.
A federal chapter choose has reportedly authorized the sale of Avant Gardner, the corporate behind the beleaguered Brooklyn Mirage venue and ill-fated Electrical Zoo competition, to its major lender for a minimum of $110 million, bringing an finish to a tumultuous chapter for one in every of New York Metropolis’s most distinguished EDM venues.
Decide Mary F. Walrath of america Chapter Court docket for the District of Delaware authorized the credit score bid from AG Acquisition 1 LLC, an affiliate of Axar Capital Administration LP, Bloomberg Regulation studies. The transaction consists of the forgiveness of pre-bankruptcy secured loans and $45.8 million in chapter financing, in line with court docket information.
The approval marks a turning level for the 80,000-square-foot East Williamsburg advanced, which has been shuttered since its guardian firm filed for Chapter 11 chapter in August with $155.3 million in debt. Avant Gardner cited persistent constructing points and operational setbacks stemming from an bold $30 million renovation as elements stopping it from reopening the Mirage. Following contentious allow disputes and security inspection failures, the venue’s proprietors in the end ousted embattled CEO Josh Wyatt and changed him with the influential nightlife entrepreneur Gary Richards.
The sale order permits Avant Gardner, in session with the client, to demolish and reconstruct the Mirage construction, supplied the client makes extra funding obtainable. A demolition allow filed this month with New York Metropolis estimates tear-down prices at roughly $1.5 million.
Decide Walrath additionally authorized a settlement between Avant Gardner, a committee of unsecured collectors and the lenders, calling it a “superb deal” for unsecured collectors. Underneath the settlement, the lender will reportedly cowl substantial precedence and administrative claims and fund bills for a liquidating belief.
“This can be a outstanding settlement and in the perfect curiosity of the property,” Decide Walrath mentioned on the listening to.
