Judge Clears Philadelphia Orchestra’s Plan to Move From Bankruptcy
June 29, 2012 | Read Time: 1 minute
Nearly 15 months after filing for Chapter 11, the Philadelphia Orchestra Association emerged from bankruptcy Thursday with a federal judge’s approval of its reorganization plan, The Philadelphia Inquirer reports.
Judge Eric L. Frank of U.S. Bankruptcy Court signed off on the plan to courtroom applause from orchestra staffers and board members, ending the legal phase of a process that saw the organization wrest significant financial concessions from its musicians and landlord, switch pension funds, and cut ties with the Philly Pops.
The longer-than-expected bankruptcy process, the first involving a major U.S. symphony, cost the Philadelphia Orchestra about $10-million. The organization’s new strategy counts on completing a $60-million campaign to cover anticipated deficits for several more seasons and additional fundraising to build its endowment.
