Monday (5/9) on Bloomberg.com, Steven Church reports, “The Philadelphia Orchestra Association is keeping money from ticket sales for next season’s concerts in escrow in case the [Association] must cancel performances, an attorney said in court today. Larry McMichael, an attorney for the association, said the 111-year-old orchestra expects to put on its next regular season, which starts in October. The escrow account was arranged should the orchestra, which says it has a $14 million deficit, issue refunds to its annual subscribers and other ticket buyers, McMichael told U.S. Bankruptcy Judge Eric Frank. ‘I can’t think of any scenario where we are not going to have a season,’ McMichael said in an interview. ‘At the same time, we want to be very careful with our subscribers’ money. People know they can subscribe now and they are going to get their money back should something happen.’ … The association blamed the bankruptcy in part on the high cost of musicians’ pensions and said in court papers that it must renegotiate their labor contract.” The Philadelphia Orchestra filed for Chapter 11 bankruptcy in April.
Posted May 10, 2011
