The Globe And Mail is reporting that Toronto’s storied El Mocambo music venue is up for sale after owner and former Dragons’ Den star Michael Wekerle defaulted on $55.6-million in debt through companies he controls.
An Ontario court signed an order last Friday appointing Ernst & Young Inc. to oversee the sale of the downtown club. The bidding process attached to the order anticipates a deadline of June 30 for binding offers and a closing date no later than August 15.
Waygar Capital Inc., a lender in Toronto, filed an application in January to put the El Mocambo into receivership, saying that Mr. Wekerle had not made any payments since June, 2021 on loans he had taken out in part to renovate the club. At a hearing last month, lawyers for Waygar asked Ontario’s Superior Court of Justice to appoint Fuller Landau Group Inc. as the receiver, saying the club would be shut down and cancellation notices sent out to those who had booked events.
Counsel for Mr. Wekerle objected and said ceasing operations would destroy the value of the El Mocambo, adding that more than 60 events were scheduled for the next three months.
Justice Peter Osborne instead appointed Fuller Landau to act as a financial monitor for the El Mocambo, allowing the club to continue operating under existing management. “While there is no formal receivership here, the temporary oasis is appropriate to provide the necessary stability during the marketing processes,” he wrote in an endorsement dated April 4.
Steven Graff, a lawyer with Aird & Berlis LLP who represents Waygar, said he expects interest in buying the venue to be “robust.”
Read more at The Globe And Mail.
The post Report: Toronto’s Iconic El Mocambo Music Venue Up For Sale appeared first on BraveWords - Where Music Lives.
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An Ontario court signed an order last Friday appointing Ernst & Young Inc. to oversee the sale of the downtown club. The bidding process attached to the order anticipates a deadline of June 30 for binding offers and a closing date no later than August 15.
Waygar Capital Inc., a lender in Toronto, filed an application in January to put the El Mocambo into receivership, saying that Mr. Wekerle had not made any payments since June, 2021 on loans he had taken out in part to renovate the club. At a hearing last month, lawyers for Waygar asked Ontario’s Superior Court of Justice to appoint Fuller Landau Group Inc. as the receiver, saying the club would be shut down and cancellation notices sent out to those who had booked events.
Counsel for Mr. Wekerle objected and said ceasing operations would destroy the value of the El Mocambo, adding that more than 60 events were scheduled for the next three months.
Justice Peter Osborne instead appointed Fuller Landau to act as a financial monitor for the El Mocambo, allowing the club to continue operating under existing management. “While there is no formal receivership here, the temporary oasis is appropriate to provide the necessary stability during the marketing processes,” he wrote in an endorsement dated April 4.
Steven Graff, a lawyer with Aird & Berlis LLP who represents Waygar, said he expects interest in buying the venue to be “robust.”
Read more at The Globe And Mail.
The post Report: Toronto’s Iconic El Mocambo Music Venue Up For Sale appeared first on BraveWords - Where Music Lives.
Continue reading...
