Deal for De La Costa restaurant comes up short of expectations
(Crain’s) — Panacea Partners LLC has found a buyer for De La Costa, but at half the price it had hoped to fetch for the Nuevo Latino restaurant.
Dock 465 LLC has offered to pay $1 million in cash for the restaurant at 465 E. Illinois St. plus money to cure certain defaults, according to document filed with the U.S. Bankruptcy Court for the Northern District of Illinois.
Panacea Partner’s bankruptcy lawyer was not available for comment.
Panacea Partners filed for Chapter 11 bankruptcy on July 7 in an effort to reorganize its financial affairs. The restaurant, which remains open, debuted in River East Plaza in September 2006 with a menu designed by Douglas Rodriguez, a James Beard award-winning chef.
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Last month, the group was allowed to hire G. Daniel Pedemonte of GDP Group in Chicago to market the 11,000-square-foot restaurant for $2 million. While several parties expressed interest, only Dock 465 LLC emerged with a deal, according to a court document.
Mr. Pedemonte said that $1 million is the starting price and that higher offers may come at an auction held later next week.
"There are other interested parties," Mr. Pedemonte said. "Will they step up, you never know and we don't know what the final price (for the restaurant) will be."
He said that Dock 465 LLC is a group of investors led by Jay Vohra, co-owner of Flatwater at 321 N. Clark St. and the former Narcisse restaurant.
Mr. Vohra was not available for comment.
The sale of De La Costa is contingent upon Dock 465 obtaining a liquor license from the City of Chicago. If a license cannot be obtained then the sale is canceled, Dock 465 gets its money back and the restaurant is returned to Panacea Partners, according to the court document.
Panacea Partners wants to expedite the sale process and has asked a bankruptcy judge to approve the deal no later than Sept. 17. Any competing bidders have until three days before the close of sale to Dock 465 to make a counter-offer that is at least $25,000 higher. If Dock 465 is outbid for De La Costa, it is entitled to a $35,000 break-up fee, according to the court document.
River East Plaza, De La Costa’s landlord, has filed an objection to a quick sale because the current agreement does not fully cover owed rent or address property repairs.
Panacea Partners filed for bankruptcy just months after Jason Hyatt, who once controlled 90% of De La Costa, was charged by the Securities and Exchange Commission with allegedly misappropriating at least $5.4 million in investor funds. The SEC claimed $2 million of that money was put toward opening De La Costa, while the rest was used to pay mortgages on two homes and buy various personal items, including a Maserati.
