In last Wednesday’s (12/29) Courier-Journal (Louisville, Kentucky), Elizabeth Kramer reports, “A federal bankruptcy court denied the Louisville Orchestra’s request to escape its contract with musicians on Wednesday, complicating the financially beleaguered organization’s bid to reorganize through Chapter 11. Judge David T. Stosberg’s ruling means that the orchestra must continue to pay its musicians through the end of the current contract on May 31, 2011. The estimated cost of salaries and benefits through the duration of the contract is $650,000. … After the decision, orchestra board President Chuck Maisch said the full board needs to meet and determine its next step. He would not indicate when that meeting will occur. Attorneys for the orchestra and CEO Robert Birman declined to comment further. … Stosberg said his decision leaves the orchestra two choices. It can pay the musicians through the rest of the contract either by raising the money or by using endowment funds. Or it can file for Chapter 7 bankruptcy, which would require liquidating all of its assets. He added that the ruling could not be appealed.”
Posted January 3, 2011
