El Mocambo Group of Companies, which own and operate the El Mocambo live music and entertainment venue in Toronto, had a monitor appointed under section 101 of the Courts of Justice Act on April 1 on application by Waygar Capital as agent for Ninepoint Canadian Senior Debt Master Fund, owed approximately $56 million.

The companies are owned by former Dragons Den star Michael Wekerle, who also owns various Waterloo-based companies which were placed into receivership in February.

The companies have defaulted on the Waygar credit agreement by, among other things, failing to pay the outstanding debt owed.

The purpose of the proceedings is to conduct a sale process with EY acting as sales officer.

Fuller Landau Group is the monitor.

Counsel is Aird & Berlis for Waygar.