Tuesday (7/31) on the Philadelphia Inquirer ArtsWatch blog, Peter Dobrin reports, “The Philadelphia Orchestra Association is out of bankruptcy. U.S. Bankruptcy Judge Eric L. Frank approved the association’s reorganization plan June 28, but with the writing of checks and completion of other administrative matters Monday and Tuesday, the curtain officially comes down on perhaps the most perilous episode in the history of the organization that supports and presents the storied ensemble. … The case took longer (15½ months), and was more expensive (almost $10 million in professional fees and expenses) than expected. ‘I can confirm we’re all done and out of bankruptcy, and the orchestra is back in its first day of business as a non-debtor in possession,’ said orchestra lawyer Lawrence G. McMichael Tuesday morning. The association succeeded in most of what it intended to achieve … A new, deeply concessionary labor deal with musicians was reached … The association was able to withdraw from a national musicians’ pension fund and shift its burden to the federal agency that insures pensions by negotiating a $1.75 million settlement with the pension fund, thus avoiding potentially lengthy litigation. A merger-in-process with the Philly Pops was ended after a $1.25 million settlement payment from the association to the Pops was agreed upon. Talks with the Kimmel Center produced rent concessions for the orchestra’s use of Verizon Hall. Bankruptcy triggered a revamped contract with the Annenberg Foundation that gave the philanthropy greater powers of oversight and control over how investment income from its $50 million gift is spent.”
Posted July 31, 2012
