Chicago Illinois Real Estate Blog

De La Costa, whose owners filed for bankruptcy protection, has been sold to a Chicago restaurateur for $1.6 million.

The sale to Dock 465 LLC, headed by Jay Vohra of Flatwater and the former Narcisse, was approved Thursday by a federal Bankruptcy Court judge.

“The debtor is pleased, the buyer is pleased, the creditors are pleased and the landlord is pleased,” said Michael Collins, bankruptcy lawyer for Panacea Partners LLC.

Panacea Partners filed for Chapter 11 bankruptcy protection on July 7, just months after co-founder Jason Hyatt was charged by the Securities and Exchange Commission for allegedly misappropriating at least $5.4 million in investor funds.

The SEC claimed that Mr. Hyatt poured $2 million of that money into opening De La Costa, where he was once a majority owner.

The 11,000-square-foot restaurant had been valued at roughly $2 million by the broker hired to find a buyer.

Dock 465 had previously offered $1 million for the restaurant at 465 E. Illinois St., but raised its bid by $600,000 at an auction held on Sept. 12. While two other firms participated in the auction, no other offers were made.

The sale’s closing is contingent upon Dock 465 obtaining a liquor license from the city.
Source