Festival Woes and Mounting Lawsuits
Avant Gardner’s troubles deepened in 2023 when last-minute operational chaos at the Electric Zoo festival sparked lawsuits from more than 75,000 ticket holders. The consolidated class actions, now pending in federal court in Manhattan, weighed heavily on the company’s finances and reputation.
The company also said it faced aggressive collection efforts from contractors and lenders tied to Mirage renovations, forcing the Chapter 11 filing.
Debt Mountain and DIP Financing
The company’s balance sheet shows a $121.1 million secured loan, $20.8 million in secured advances, $11.8 million in junior notes, and another $1.5 million in unsecured debt. On top of that, Avant Gardner is fighting over $11.4 million in disputed cash advance agreements with lenders including TVT Capital Source, Insta Funding, and Pinnacle Business Funding, which it intends to challenge in bankruptcy court.
Its lenders have committed to a $45.8 million DIP package — $25 million in fresh cash and a rollup of existing debt — and plan to credit bid as stalking horse at the auction. The company hopes to close a sale before November.
