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 accepted the sale of Avant Gardner, the corporate behind the beleaguered Brooklyn Mirage venue and ill-fated Electrical Zoo competition, to its main lender for no less than $110 million, bringing an finish to a tumultuous chapter for certainly one of New York Metropolis’s most outstanding EDM venues.
Decide Mary F. Walrath of the USA Chapter Court docket for the District of Delaware accepted 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 keeping with court docket information.
The approval marks a turning level for the 80,000-square-foot East Williamsburg complicated, which has been shuttered since its mum or dad 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 formidable $30 million renovation as components 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 customer, to demolish and reconstruct the Mirage construction, offered the customer makes further funding accessible. A demolition allow filed this month with New York Metropolis estimates tear-down prices at roughly $1.5 million.
Decide Walrath additionally accepted a settlement between Avant Gardner, a committee of unsecured collectors and the lenders, calling it a “excellent deal” for unsecured collectors. Underneath the settlement, the lender will reportedly cowl substantial precedence and administrative claims and fund bills for a liquidating belief.
“It is a outstanding settlement and in the very best curiosity of the property,” Decide Walrath stated on the listening to.
