Philadelphia Orchestra reaches agreement with musicians’ pension fund

    The Philadelphia Orchestra has announced an agreement with the American Federation of Musicians and Employers’ Pension Fund, resolving an issue that arose when the Orchestra previously agreed on a contract with musicians that withdrew the players from the fund.

    The settlement is a “critical step in the Association’s reorganization process, addresses both the administrative claim recently filed as well as the payment for withdrawal liability that the AFM-EPF originally sought,” according to a statement released by the Orchestra.
    To recap, Arts & Culture reporter Peter Crimmins explains the Orchestra’s deal with the musicians to have them withdraw from the fund resulted in the AFM-EPF threatening a lawsuit over unpaid money.

    The statement from the Philadelphia Orchestra Association goes on to say the agreement “virtually assures that litigation between the Association and the AFM-EPF will be avoided and it resolves the AFM-EPF’s challenges to endowment donor restrictions. More importantly, it positions the Association well to file a consensual Plan of Reorganization once our agreement-in-principle for an amended lease with the Kimmel Center is finalized.”

    Despite opposition from players, the Orchestra filed for bankruptcy protection last April. One of the final hurdles in resolving the bankruptcy is for the Orchestra to reach a rental agreement with the Kimmel Center.

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