In Monday’s (6/27) Philadelphia Inquirer, Peter Dobrin writes, “Will the Philadelphia Orchestra Association be permitted to end its participation in the current musicians’ pension plan? And if so, will the association be compelled to tap its $120 million endowment to satisfy the estimated $23 million cost of withdrawing from the pension fund? In connection with its April 16 bankruptcy petition, the orchestra association has claimed that the $120 million endowment cannot be touched. The principal was designated by donors to remain unspent, the association contends. A motion filed Monday in U.S. Bankruptcy Court by the American Federation of Musicians (AFM) essentially says: Prove it. As the largest creditor in the case, the AFM is seeking documentation relating to endowments, grants, donations, bequests, and pledges to help determine whether a pension-fund claim may be satisfied from those assets. The motion, which requests a broad range of documentation relation to the orchestra’s finances and operations, does not ask Judge Eric L. Frank to take specific action beyond granting the start of the discovery process, which is routine. … The association has said that any reduction in its endowment will jeopardize its chances of achieving long-term financial stability. The orchestra holds $120 million in endowment; the Academy of Music, which the orchestra owns, has an additional $20 million.”
Posted June 28, 2011
