Toronto's renowned El Mocambo music venue, owned by Michael Wekerle, is being sold due to a $55.6 million debt default. An Ontario court appointed Ernst & Young to oversee the sale, with a June 30th deadline for offers and an August 15th closing date.
Waygar Capital Inc., a lender, initiated legal action in January after Wekerle failed to make payments since June 2021 on loans used for renovations. While initially seeking receivership, the court appointed a financial monitor, allowing the venue to remain operational.
Despite the financial challenges, Wekerle expects robust buyer interest and aims to secure a buyer who will preserve the El Mocambo's legacy. He previously expressed interest in retaining a smaller ownership stake, bringing in experienced partners to manage the club.
The El Mocambo, established in 1948, was purchased by Wekerle in 2014 for $3.8 million. Extensive renovations costing over $30 million, delayed by the pandemic, preceded its reopening in 2021. Since then, it has struggled to secure high-profile acts. The loans were facilitated by the Canadian Senior Debt Master Fund, with Waygar serving as a consultant.