A federal bankruptcy judge has approved the sale of Avant Gardner—the company behind Brooklyn Mirage and Electric Zoo—to its main creditor, effectively ending months of uncertainty for one of New York’s largest electronic music venues. The deal, valued at a minimum of $110 million, transfers ownership to AG Acquisition 1 LLC, an affiliate of Axar Capital Management LP, according to Bloomberg Law.

The sale includes forgiveness of existing debts and nearly $46 million in financing provided during the bankruptcy process. Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware described the agreement as a fair outcome for creditors, highlighting that it brings closure to a complex and highly publicized restructuring.

Avant Gardner, which operates the 80,000-square-foot East Williamsburg complex, entered Chapter 11 bankruptcy in August with more than $155 million in liabilities. The company attributed its financial distress to mounting repair costs, delays in reopening, and operational complications following a costly renovation project that exceeded $30 million.

After a series of failed safety inspections and permit disputes, the venue replaced former CEO Josh Wyatt with nightlife executive Gary Richards. The new leadership is expected to play a key role in the next phase of the property’s redevelopment.

As part of the approved sale order, Avant Gardner is permitted to demolish and rebuild the Mirage structure if the buyer provides additional funds. City filings show that demolition expenses are estimated at around $1.5 million.

The judge also endorsed a settlement between Avant Gardner, its creditors, and the lenders, calling it a positive step that ensures payments to priority and administrative claim holders, while creating a liquidating trust to manage remaining assets.

“This represents a strong resolution for all parties involved,” Judge Walrath said during the hearing, noting that the agreement paves the way for the iconic venue’s potential rebirth.

“This represents a strong resolution for all parties involved,” Judge Walrath said during the hearing, noting that the agreement paves the way for the iconic venue’s potential rebirth.