Fri May 25, 2012
The Philadelphia Orchestra Files Plan of Reorganization
The Philadelphia Orchestra has filed its plan to emerge from Chapter 11 bankruptcy protection, in which it has agreed to pay $5.49 million to creditors. Just over a year after seeking relief in bankruptcy court, the Orchestra has realigned key financial obligations by moving from a defined benefit to defined contribution retirement plan, renegotiating its lease with the Kimmel Center, and ending its relationship with Peter Nero and the Philly Pops.
In a statement released on May 24th, the Orchestra says fundraising will play a critical role in the successful emergence from reorganization. Among its obligations: fulfill challenge grants from major funders, and raise $5.7 million by the end of August. Meanwhile, the Orchestra's plan for exiting Chapter 11 could receive court approval by the end of July. Read the Orchestra's official statement here