In 2007, CBGB founder Hilly Kristal died, which set off a fight for his money, and for the CBGB name. Now the Wall Street Journal reports that a bankruptcy judge ruled that the late Kristal’s estate is the rightful owner of the club’s assets, including its name.
Following Kristal's death, CBGB Holdings (formed by marketing professionals James Blueweiss and Robert Williams) purchased the assets with $1.1MM cash and a promissory note, which defaulted in February. WSJ notes that "the Kristal estate was given the right to foreclose on the assets without further notice if the note wasn’t paid off by the end of the forbearance period."
Both sides are due in court again on Monday, and meanwhile, the estate is now interested in talking to potential buyers.