Receiverships have been on the rise across Ontario amid an economy that has residents and businesses alike stretched extremely thin, and while it has felt like mostly residential developers are being hit with the court-ordered resolution lately, a storied music venue in Toronto is being threatened with the same fate.
The owner of the El Mocambo, who completely revitalized and reopened the decades-old club in 2020, is being taken to court by one Waygar Capital Inc., a creditor that says tens of millions of dollars in loans associated with the property (and others) remain unpaid.
The filing, details of which were published by the Globe & Mail this week, states that ElMo owner and Dragons’ Den investor Michael Wekerle owes a staggering $ 88 million or so between multiple companies he helms.
Between Wekerle’s various indebted interests and the multiple firms involved —Waygar being, in this case, a consultant responsible for recouping the funds for Ninepoint Partners — the claim is a little complicated.
But, what’s pretty straightforward is what lenders are asking for the neon palm-tree adorned landmark: that the courts “take any and all steps necessary to protect the property and monetize same by having a receiver appointed.”
Having been “talked into” purchasing the site in 2014 after first expressing interest in only its legendary sign, Wekerle told blogTO back in 2020 that he assumed it would only require “a few million dollars” to renovate.
But, the massive overhaul ended up costing far, far more — a price tag that seemed worth it, based on the impressive result when it finally made its debut.
Unfortunately, no amount of flash seemed to be able to draw the acts and ticket sales that it appeared Wekerle was relying on to repay the advances he borrowed to get the ElMo to that point.
The claims outlined above have yet to be tested and proven in Ontario courts. When contacted on the topic this week, El Mocambo management told blogTO that there is “nothing to worry about.”
“We are all good here and carrying on business as usual,” they said, thanking fans and the city in general for all of the continued support.
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