A federal bankruptcy judge has approved the $110 million sale of Avant Gardner, the parent company behind Brooklyn Mirage and the Electric Zoo festival, marking the end of a turbulent chapter for one of New York City’s leading electronic music venues.
Judge Mary F. Walrath of the U.S. Bankruptcy Court in Delaware approved the credit bid from AG Acquisition 1 LLC, an affiliate of Axar Capital Management, according to Bloomberg Law. The deal includes forgiveness of pre-bankruptcy loans and $45.8 million in bankruptcy financing.
The approval represents a major shift for the 80,000-square-foot East Williamsburg complex, which has remained closed since Avant Gardner filed for Chapter 11 bankruptcy in August, citing $155 million in debt. Ongoing construction problems, permit disputes, and safety inspection failures—following a costly $30 million renovation—ultimately led to the removal of former CEO Josh Wyatt and the appointment of nightlife veteran Gary Richards.
The court order allows Avant Gardner, in coordination with the buyer, to demolish and rebuild the Brooklyn Mirage, pending additional funding. A recent demolition permit filed with New York City pegs the teardown costs at roughly $1.5 million.
Judge Walrath also approved a settlement between Avant Gardner, its lenders, and a committee of unsecured creditors, describing it as “a very good deal.” The agreement ensures coverage of priority and administrative claims and allocates funding for a liquidating trust to close the case.
