Philadelphia Orchestra Announces Plans to Exit Bankruptcy
Signaling its preparedness to exit from Chapter 11 bankruptcy protection, the Philadelphia Orchestra Association last Wednesday filed a plan of reorganization with the United States Bankruptcy Court. The orchestra, which filed for protection in April 2011, still faces massive debts, but the plan, which includes bold fund-raising goals, could have the PO emerge from protection as early as July.
In its filing, the association has agreed to pay $5.49 million to creditors, including $1.75 million to the American Federation of Musicians and Employers’ Pension Fund (which it is also exiting as part of the plan) and $748,000 in back rent to the PO’s home, the Kimmel Center. “The most important thing for us to acknowledge on this day is that despite the challenges, intensity, and length of this process, our incredible staff and musicians provided continuous exemplary performances to our audiences,” said Allison Vulgamore, president and CEO of the Philadelphia Orchestra.
The orchestra leaves today for a weeklong residency in Beijing, marking the first time any US orchestra has co-created a long-term residency in the People’s Republic of China. The 2012 residency and tour of China runs from May 28 through June 6.