2 minute read | November.03.2025
Live music entertainment operators Avant Gardner, LLC and several of its affiliates filed for chapter 11 in August after costly renovations and permitting issues prevented reopening their flagship venue – the Brooklyn Mirage. The Debtors entered bankruptcy with over $150 million in secured debt, with a plan to sell its assets to prepetition secured creditor and DIP lender Axar Capital Management LP.
Orrick advised the official committee of unsecured creditors, methodically and forcefully litigating critical issues on a compressed timeline and seeking the appointment of a chapter 11 trustee. Ultimately, the Debtors and Axar agreed to a global settlement valued at more than $20 million consisting of commitments from Axar to fund administrative expenses, priority unsecured claims, and the wind down of the Debtors following the sale, curing of all defaults under a ground lease for the land underlying the Brooklyn Mirage, comprehensive governance reforms in the form of the ouster of an incumbent director and appointment of an independent director selected by the committee (Vikram Jindal), $3.3 million in cash, litigation claims against certain insiders of the Debtors, and a contingent value right entitling unsecured creditors to 15% of the value of the enterprise over and above a certain threshold amount. As a result of the global settlement, the committee agreed to support the asset sale to Axar and release of estate claims against Axar.
Judge Mary F. Walrath approved the sale to Axar and the settlement over the objection of certain merchant cash advance lenders at a hearing on October 22, observing that the committee got “a very good deal” and describing the outcome as “a remarkable settlement and in the best interests of the estate.”
Avant Gardner and its affiliated Debtors are leading New York live music and festival venue operators, best known for the Brooklyn Mirage and Electric Zoo.
The approved settlement enables Axar to acquire Avant Gardner’s assets, including the Brooklyn Mirage, while providing meaningful recoveries to unsecured creditors.
The multidisciplinary Orrick team is led by Mark Franke, Nicholas Poli, and Brandon Batzel. The team also includes Ari Roytenberg, Nicholas Sabatino, Michael Trentin, Jenna MacDonald Busche, Andrew Nisco, Marsha Mogilevich, Spencer Cohen, Max Hyatt and John Narducci.