Philadelphia Orchestra officially out of bankruptcy

The Philadlephia Orchestra is officially out of bankruptcy.

 

We are deeply grateful to all who have championed and supported our Orchestra during this difficult yet necessary process,” Allison Vulgamore, president and CEO of The Philadelphia Orchestra Association, said in a press release. “With the conclusion of our financial reorganization, we turn the institution’s full focus to what we are all passionate about—sharing the incredible artistry of The Philadelphia Orchestra with our Philadelphia audiences, especially as we welcome the electrifying Yannick Nézet-Séguin as music director in October. The Philadelphia Orchestra remains among the best in the world, bringing audiences to the edge of their seats, earning rave reviews and generating enthusiasm in this great city and as its ambassador abroad. There is much critical diligence and fiscal capitalization to be achieved for the Orchestra and we embrace this new era—and our audiences—with gratitude and dedication.”

The reorganization was confirmed by the United States Bankruptcy Court of the Eastern District of Pennsylvania on June 28. Through its financial reorganization, the Orchestra addressed more than $100 million in claims, debts, and liabilities with a settlement of $5.49 million. Of that total, $4.25 million will be paid as of the effective date. The remainder of the Association’s settlement payments will be distributed based upon previously agreed upon multi-year schedules.

Also during the bankruptcy, the Orchestra negotiated a conciliatory contract with players and made changes to the pension plan that also cut costs.

 

The bankruptcy took 15 months and cost about $10 million is professional fees and expenses.