yup, tis true. this is from a buddy of mine: AUG 14, 2001 2 Troubled Midtown Nightclubs Sold at Auction By KATHERINE E. FINKELSTEIN Two problem-plagued Manhattan nightclubs, both owned by Peter Gatien, the former nightlife magnate, were up for sale yesterday at an auction in bankruptcy court in Manhattan. One of the clubs, the Limelight, which was in a former Episcopal church at 20th Street and the Avenue of the Americas, was sold for $3.2 million to Flatiron Entertainment LLC, which plans to use the space for an upscale discotheque, an Off Off Broadway theater, a cabaret and a site for corporate parties. The auction of the other club, the Tunnel, at 27th Street and 12th Avenue, was postponed until next Tuesday, because interested buyers needed more time to organize their bids, according to Alan Klinger, one of Mr. Gatien's lawyers. Some of the money from the Limelight sale will go toward paying $1.95 million in back rent that Mr. Gatien owes, and $864,000 in back taxes, according to Ethan Geto, a spokesman for Flatiron Entertainment. Mr. Gatien was one of the city's most influential club impresarios in the 1980's. But in the 1990's, as Mayor Rudolph W. Giuliani accelerated his crackdown on quality-of-life offenses, Mr. Gatien attracted the attention of government prosecutors. In 1998, federal prosecutors accused Mr. Gatien of turning the Limelight and the Tunnel into drug bazaars. He was acquitted. But Mr. Gatien and his wife, Alessandra, pleaded guilty in January 1999 to state tax-evasion charges, agreeing to spend 90 days in jail and pay $1.88 million in back taxes and fines. That same month, an 18-year-old died in the Tunnel of a drug overdose after combining Ecstasy with ketamine, an anesthetic known as Special K. Police raids and arrests at the clubs continued until Mr. Gatien agreed to outside monitoring. Problems at the Tunnel continued, however. In February 2000, a 27- year-old man was shot there. And last April, a 16-year-old was stabbed to death and a man was shot twice during a brawl involving clubgoers who had been ejected from the club. Yesterday, Mr. Geto made much of what he called a trouble-free relationship that one of Flatiron's owners, John Blair, had in promoting parties that have drawn no noise complaints. Flatiron's promotional material says that a "zero-tolerance policy towards illegal drug use both on and around the premises will be enforced at all times." The company claimed that patrons at its clubs, unlike those of some other clubs, are likely to be older than the patrons Limelight had attracted. One of Mr. Gatien's lawyers, Benjamin Brafman, said yesterday that Mr. Gatien had had no choice but to turn to bankruptcy court, where he believed he would get fair treatment.