AGDP Holding (Avant Gardner): Brooklyn Mirage's $110M Credit Bid Sale After Permit Collapse

AGDP Holding Inc., the parent company of Avant Gardner and operator of Brooklyn Mirage—ranked the #1 large music club in North America and #16 worldwide—filed for chapter 11 bankruptcy protection on August 4, 2025, after Brooklyn Mirage failed to obtain city permits for the 2025 season. The New York City Department of Buildings revoked the venue's operating permit, deeming it "flat out unsafe," just hours before a planned May 2025 reopening following major renovations. With approximately $155 million in secured debt owed to Axar Capital, approximately 90,000 ticket holders with tickets for planned events, and a complex spanning 80,000 square feet in East Williamsburg closed for the entire summer, the company pursued a 363 sale that resulted in Axar's $110+ million credit bid approval on October 22, 2025.

The case featured allegations of fraud and mismanagement by the Official Committee of Unsecured Creditors, who claimed Axar had incrementally taken control of the company and directed permit-related submissions related to the regulatory failures. The First Day Declaration described the venue's financial position and the circumstances leading to the filing. The UCC ultimately achieved what Judge Mary F. Walrath called a "remarkable settlement" valued at over $20 million, including $3.3 million in cash, governance reforms, and a contingent value right providing unsecured creditors 15% of enterprise value above certain thresholds. The debtors filed a plan of liquidation in November 2025, while the new owner announced plans to demolish and rebuild the venue for a 2026 reopening.

Court	U.S. Bankruptcy Court, District of Delaware
Case Number	25-11446
Judge	Hon. Mary F. Walrath
Petition Date	August 4, 2025
Debtor(s)	AGDP Holding Inc. (6 entities: AGDP Holding, Avant Gardner, AG Management Pool, EZ Festivals, Made Event, Reynard Productions)
Assets	$50-100 million
Liabilities	$100-500 million
Secured Debt	~$155 million (Axar Capital)
DIP Facility	$45.8 million (Axar)
Sale Price	$110+ million (credit bid)
Buyer	AG Acquisition 1 LLC (Axar affiliate)
Sale Approval	October 22, 2025

From Cityfox to Brooklyn Mirage: Venue Development

Brooklyn Mirage grew out of work by Swiss-born Cityfox founders Jürgen "Billy" Bildstein and Philipp Wiederkehr, who previously ran nightclubs in Switzerland and promoted events in New York City under the Cityfox brand. Early development included regulatory setbacks. In 2015, Cityfox attempted to throw a Halloween party at a former NuHart Plastic factory—a Superfund site—and firefighters shut it down. Six months later, the NYPD issued summonses after the venue was caught selling alcohol without proper licensing.

The complex takes shape. In spring 2016, Wiederkehr Real Estate purchased a block-sized lot in East Williamsburg, Brooklyn, acquiring buildings that had previously housed a steel plant and waste management facility. The development that emerged—Avant Gardner—comprised an 80,000-square-foot, three-level complex with outdoor and indoor spaces, interconnected walkways and stairways, multiple bars, and VIP areas. Brooklyn Mirage opened in 2017 as a seasonal outdoor venue with 6,000-person capacity, lighting and video installations, and palm trees imported from Florida.

The complex comprised three venues. Brooklyn Mirage operated as a seasonal outdoor space. The Great Hall and Kings Hall operated as indoor venues, enabling year-round programming. Industry recognition and expansion. DJ Magazine named Avant Gardner the top large club in North America and ranked it 16th best club in the world. The venues hosted artists such as Skrillex and Armin van Buuren.

In May 2022, the company acquired EZ Festivals LLC and Made Event LLC from LiveStyle for $15 million, gaining control of Electric Zoo—New York's biggest electronic dance music festival.

Leadership transitions and governance changes. In October 2024, Avant Gardner named Josh Wyatt as its first-ever CEO, with founder Jürgen Bildstein remaining as Creative Director. Following the failed reopening in May 2025, Wyatt was fired and replaced by Gary Richards, who was hired to "rebuild the Company's culture and turn the business around." The chapter 11 filing followed in August 2025.

2025 Season: Permit Revocation and Safety Findings

The immediate trigger for AGDP Holding's chapter 11 filing was the failure to obtain operating permits for Brooklyn Mirage's 2025 season. The company undertook renovations and expansion, with court filings indicating the project was "beset by delays and cost overruns". The First Day Declaration stated Avant Gardner "expended significant Company resources" on the renovations and entered high-interest financing arrangements with lenders to fund the work.

The May 2025 reopening. Brooklyn Mirage was scheduled to reopen on May 1, 2025 following the renovation program. As of August 4, as many as 90,000 people held tickets for planned events at the venue. Hours before the first show was set to begin, the New York City Department of Buildings revoked the temporary occupancy certificate, preventing the venue from opening.

Officials stated the venue was "flat out unsafe" and cited "numerous objections... both safety related and technical in nature." Brooklyn Mirage remained closed for the 2025 season. The Great Hall and Kings Hall continued operating.

Permit fraud allegations. When the Official Committee of Unsecured Creditors moved to appoint a trustee, it alleged fraud and mismanagement in connection with the renovation project and permit applications.

According to the creditors' allegations, the Axar-controlled board directed permit applications that sought to circumvent safety standards. The allegations included:

• Classifying the Mirage stage as a "temporary structure" to avoid more stringent permanent construction requirements
• Submitting designs without a roof to evade maximum height restrictions
• Incorrectly stating floor space calculations to "skirt requirements concerning square footage limits for mezzanines and balconies"

The creditors alleged these design choices and representations led to the permit revocation. New York City revoked the stage's operating permit after identifying the issues.

Earlier regulatory issues. In 2023, the venue encountered liquor license issues related to reports of drug use at the facility.

The 2023 Electric Zoo festival saw the first day canceled due to failure to build stages and obtain needed permits. The company oversold the event by approximately 7,000 tickets, leading to "people storming the gates." These failures resulted in unpaid vendor claims, the cancellation of the 2024 festival edition, and an ongoing class-action lawsuit.

Capital Structure and Debt Burden

AGDP Holding entered bankruptcy with approximately $155 million in funded secured debt obligations owed to Axar Capital, approximately $6.5 million in unpaid taxes, and roughly $800,000 in employee wages, contractor obligations, and labor-related expenses. The Disclosure Statement cited as much as $500 million in total liabilities against less than $100 million in assets.

Axar's position. Axar Capital Management was the prepetition secured lender. The UCC alleged Axar incrementally took control of Avant Gardner by installing associates into management and board positions and directed permit-related submissions. Axar was positioned to credit bid for the assets as the prepetition secured lender and DIP lender.

Court filings noted the company had entered "high-interest financing arrangements with lenders" to fund the Brooklyn Mirage renovation.

Unsecured creditors and ticket holders. With as many as 90,000 people holding tickets for canceled Brooklyn Mirage events at the time of filing, ticket holders made up a large portion of the creditor base. Court filings estimated total creditors between 50,001 and 100,000.

Trade creditors, vendors, and contractors added to the unsecured claims base, with exposure from the renovation project and the Electric Zoo festival. The class-action litigation arising from the 2023 Electric Zoo failures was pending during the bankruptcy case.

363 Sale to DIP Lender Axar Capital

The AGDP Holding bankruptcy proceeded toward a 363 sale, with the prepetition secured lender positioned as the stalking horse bidder. The process resulted in a credit bid transaction that transferred the venue complex to an Axar affiliate alongside the UCC settlement.

DIP Financing.

Axar Capital Management affiliates provided $45.8 million in debtor-in-possession financing to fund operations during the bankruptcy case. The DIP Motion was filed on the petition date, August 4, 2025, and the court entered an Interim DIP Order the following day.

The DIP financing funded operations and administrative expenses during the sale process. The UCC filed a sealed omnibus objection to the DIP motion, sale motion, and bid procedures on September 7, 2025.

Bid Procedures and Sale Process.

The Sale Motion was filed on August 14, 2025, establishing bid procedures for the marketing and sale of substantially all of the debtors' assets. The Bid Procedures Order was entered on September 11, 2025, with AG Acquisition 1 LLC—an Axar affiliate—designated as the stalking horse bidder with a credit bid.

Sale hearing and approval. Judge Mary F. Walrath approved the credit bid sale at a hearing on October 22, 2025. The transaction valued the purchase at a minimum of $110 million, structured as forgiveness of the prepetition secured loans plus the $45.8 million DIP financing. The Sale Order was entered on October 24, 2025, allowing the transfer of all three venues—Brooklyn Mirage, Great Hall, and Kings Hall—to the new owner.

Demolition and 2026 Reopening Plans.

On October 10, 2025, permit applications were filed with the NYC Department of Buildings for full demolition of Brooklyn Mirage. The application sought to tear down approximately 32,000 square feet of temporary structures at an estimated cost of $1.5 million. Axar's lawyers confirmed the venue would proceed with demolition and construction "in order to get the facility ready for the 2026 season."

UCC Investigation and Settlement

The Official Committee of Unsecured Creditors, represented by Orrick, Herrington & Sutcliffe LLP as co-counsel with Morris James LLP providing local representation, conducted an investigation into the circumstances leading to the filing. IslandDundon LLC served as the committee's financial advisor.

Fraud and Mismanagement Allegations.

In a motion to appoint a chapter 11 trustee, the committee alleged that Axar "took control of Avant Gardner incrementally by installing associates into management and board positions."

The committee alleged the Axar-controlled board sought to classify the Brooklyn Mirage stage as a "temporary structure" to circumvent more stringent safety standards applicable to permanent construction. Designs were allegedly submitted without a roof to evade maximum height requirements, and floor space was stated incorrectly to avoid mezzanine and balcony regulations. The UCC alleged these decisions were made at the direction of Axar-affiliated management.

The committee filed a sealed Omnibus Objection to the DIP motion, sale motion, and bid procedures on September 7, 2025, and subsequently filed a motion seeking standing to investigate and pursue claims against insiders.

Settlement Terms.

The UCC and Axar reached a settlement that Judge Walrath characterized as a "very good deal" and "remarkable settlement." Orrick highlighted the settlement in its announcement.

The Settlement Motion was filed on October 1, 2025, and approved on October 24, 2025—the same day as the Sale Order and DIP Final Order.

Plan of Liquidation

Following the sale closing, the debtors filed a Joint Plan of Liquidation and accompanying Disclosure Statement on November 5, 2025. The Disclosure Statement was approved on November 4, 2025, and a Plan Supplement providing additional plan-related information was filed on December 1, 2025. Voting tabulation was filed on December 16, 2025.

Contested Matters and Litigation

Class action plaintiffs. The Electric Zoo 2023 festival failures generated class-action litigation that followed the debtors into bankruptcy. Plaintiffs alleged damages arising from the canceled first day, the failure to build stages, the lack of required permits, and the overselling of approximately 7,000 tickets that led to "people storming the gates." The class action plaintiffs filed a joinder and motion on November 10, 2025.

Commercial creditor objections. TVT Capital Source LLC, Insta Funding LLC, Pinnacle Business Funding LLC, and White Star Funding filed sealed objections in mid-October 2025. An order authorizing them to pursue relief was entered on October 23, 2025. A stipulation resolving the TVT entities' claims was filed on December 1, 2025.

LiveStyle claim. The $15 million acquisition of Made Event and Electric Zoo in 2022 generated a claim. LiveStyle, the seller in that transaction, filed a stipulation resolving the LiveStyle claim on December 8, 2025, with an order approving the stipulation entered the same day.

Professional Retentions

Debtor Professionals.

Committee Professionals.

The court entered an order authorizing retention of ordinary course professionals on September 2, 2025.

Key Timeline

Frequently Asked Questions

What is Avant Gardner and why did it file for bankruptcy?

Avant Gardner operates Brooklyn Mirage, ranked the #1 large music club in North America by DJ Magazine. The company filed for chapter 11 bankruptcy after the New York City Department of Buildings revoked operating permits for the 2025 season, deeming the recently renovated venue "flat out unsafe." At filing, the company reported approximately $155 million in secured debt and about 90,000 ticket holders with claims.

How much does Avant Gardner owe and to whom?

The company owed approximately $155 million in secured debt to Axar Capital Management, approximately $6.5 million in unpaid taxes, and roughly $800,000 in wages and contractor obligations. Total liabilities were estimated between $100 million and $500 million against assets of $50-100 million.

What happened to ticket holders for canceled 2025 events?

Approximately 90,000 people held tickets for planned Brooklyn Mirage events when the venue failed to open for the 2025 season. These ticket holders became unsecured creditors in the bankruptcy case. The UCC settlement included $3.3 million in cash and a contingent value right providing 15% of enterprise value above certain thresholds.

Who bought Brooklyn Mirage out of bankruptcy?

AG Acquisition 1 LLC, an affiliate of Axar Capital Management (the prepetition secured lender and DIP lender), purchased all Avant Gardner venues through a credit bid valued at $110+ million. The transaction extinguished Axar's secured claims and DIP financing in exchange for the venue assets.

What were the fraud allegations against Axar?

The Official Committee of Unsecured Creditors alleged that Axar incrementally took control of Avant Gardner by installing associates into management and board positions and directed permit-related submissions, including building designs without roofs to evade height restrictions and floor space representations to avoid mezzanine regulations.

What did unsecured creditors receive?

The UCC achieved a settlement valued at more than $20 million, including $3.3 million in cash, Axar's commitment to fund administrative and priority claims, cure of ground lease defaults, governance reforms, preservation of certain litigation claims against insiders, and a contingent value right providing 15% of enterprise value above certain thresholds.

Will Brooklyn Mirage reopen?

The new owner filed permits to demolish 32,000 square feet of temporary structures and plans to rebuild the venue to meet safety standards. Axar's lawyers stated the venue would proceed with demolition and construction to be ready for the 2026 season.

What happened to Electric Zoo festival?

Avant Gardner acquired Electric Zoo for $15 million in May 2022. In 2023, the first festival day was canceled because stages were not built, required permits were not obtained, and the event was oversold by approximately 7,000 tickets. The 2024 edition was canceled, and the festival failures led to class-action litigation that followed the company into bankruptcy.

Why did NYC revoke Brooklyn Mirage's permits?

The Department of Buildings cited the venue as "flat out unsafe" with "numerous objections... both safety related and technical in nature." According to UCC allegations, building designs were submitted without roofs to evade height limits, floor space was misrepresented to avoid mezzanine requirements, and the stage was classified as a temporary structure to circumvent permanent construction standards.

What happened to Avant Gardner's leadership?

Josh Wyatt, named the company's first-ever CEO in October 2024, was fired in May 2025 following the failed reopening. Gary Richards was hired as CEO with a mandate to "rebuild the Company's culture and turn the business around." The chapter 11 filing came approximately two months after this leadership transition.

Who is the claims agent for AGDP Holding (Avant Gardner)?

Kurtzman Carson Consultants LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

Read more chapter 11 case research on the ElevenFlo blog.