Philadelphia Orchestra emerges from bankruptcy
Baku, August 1 (AZERTAC). A month after a U.S. Bankruptcy Court judge approved its reorganization plan, The Philadelphia Orchestra Association announced Tuesday it has officially emerged from Chapter 11.
The POA addressed more than $100 million in claims, debts and liabilities with a settlement of $5.49 million, a statement from the association and its subsidiary, the Academy of Music, said.
Of the total, $4.25 million will be paid according to an agreed-upon schedule, the statement said. The rest will be distributed according to a multi-year plan.
"We are deeply grateful to all who have championed and supported our Orchestra during this difficult yet necessary process," Allison Vulgamore, association president and CEO, said.
The orchestra stunned the arts community when it became the first major U.S. orchestra to file for Chapter 11 bankruptcy protection in April 2011.
Under the reorganization plan, the 111-year-old symphony will shrink from 105 musicians to 95 and cut their pay by about 15 percent. The orchestra also got a break on its rent from its main venue, the Kimmel Center.
Officials said the organization's long-term health has been bolstered by a new labor agreement covering musicians and a shift away from defined benefit pension plans.
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