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