Brooklyn Mirage Creditors Pull Support for Bankruptcy Buyer Deal

Jan. 28, 2026, 8:12 PM UTC

Creditors of New York City live music venue owner Avant Gardner have pulled their support for a bankruptcy plan after discovering distressed debt fund Axar Capital Management LLC negotiated a deal with a third-party venue manager to take over the Brooklyn Mirage club.

The reversal comes after lender Axar “secretly negotiated” a deal between itself and a “world-renowned venue manager and operator,” undermining a global settlement, an unsecured creditors’ committee told the US Bankruptcy Court for the District of Delaware in a notice Tuesday. The buyer is the Pacha Group, according to a source familiar with the matter.

Axar has ...

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.