Nashville music scene dealt blow as venue files for bankruptcy amid fraud probe

Nashville's world-famous euphony segment was dealt a awesome rustle aft 1 of its iconic venues revenge for bankruptcy past week. 

Plaza Mariachi revenge for Chapter 11 bankruptcy connected July 1, amid an ongoing fraud probe into its proprietor and an effort by a slope to auction disconnected nan venue.

First Republic Bank, which is owed astir $11 cardinal successful loans, foreclosed connected nan much-loved Hispanic venue and shopping halfway connected June 6. 

The slope said it was looking to auction disconnected nan spot connected July 2, nevertheless nan time earlier nan business revenge for bankruptcy, placing a halt connected nan sale. 

It comes aft Plaza Mariachi proprietor Mahan Janbakhsh was indicted for slope fraud past month. Janbakhsh faces national charges of falsifying assets. 

'Mark Janbakhsh has pleaded not blameworthy and is vigorously defending himself against nan charges' a typical told DailyMail.com connected Monday.  

The venue is presently still unfastened offering its accustomed array of euphony concerts, salsa nights, Mexican cuisine and shopping. 

Janbakhsh insists that nan Plaza Mariachi is not really successful financial problem but simply could not repay nan entirety of its loans successful afloat arsenic its position came to an extremity earlier successful nan summer. 

A typical for nan business told The Tennessean that nan institution had been gathering its monthly payments connected nan loans but could not repay nan main equilibrium of $8 cardinal astatine nan extremity of nan term. 

'That is what is causing nan foreclosure and nan Chapter 11, which we are assured that we will travel retired of successful a stronger position,' Plaza Mariachi typical Randy Hinger said successful a statement.

'We judge it is important for nan nationalist to understand that Plaza Mariachi was not down connected indebtedness payments, which is simply a important facet of nan foreclosure and consequent Chapter 11 bankruptcy filing.'  

The institution will now effort to restructure its debts and assets nether tribunal supervision.

The waste has been temporarily stopped for nan adjacent 6 days, David Anthony, an lawyer representing First Financial Bank told The Tennessean connected Tuesday. 

If nan business makes liking payments connected its indebtedness aliases files a court-approved reorganization scheme nan extremity will apt stay successful place, Anthony added.

'Absent thing for illustration a voluntary dismissal happening, successful 60 days nan automatic enactment will still beryllium successful place, and nary foreclosure will hap past either,' Plaza Mariachi lawyer Sean Wlodarczyk besides confirmed to nan publication.

'The thought down this is that nan bankruptcy codification keeps an overly fierce creditor from being capable to waste properties retired from nether group aliases businesses who are reorganizing their indebtedness via nan bankruptcy process,' he explained. 

The Plaza Mariachi plans to 'sell nan exterior properties surrounding Plaza Mariachi arsenic portion of a restructuring and caller owe to proceed operating nether position that are charismatic from a different lender,' nan institution said successful a connection connected Monday.