“A plan to sell off New York City Opera’s name and other assets has been withdrawn by the defunct opera company’s board,” writes Jennifer Smith in Monday’s (7/13) Wall Street Journal. “The decision follows months of legal wrangling between two bidders who both hope to revive the scrappy company…. The opera’s board has recently been weighing another option: reorganizing the company through the bankruptcy process, with one of the bidders serving as a plan sponsor. That course could make it easier for NYCO to retain a bequest estimated to be worth $5.5 million.… The committee representing the opera company’s creditors, which were owed millions when NYCO sought chapter 11 protection in late 2013, supports the move and earlier said it would attempt to block the sale because it wasn’t in the best interests of the debtor’s estate. Neither of the two entities that wanted to buy NYCO’s assets”—Roy Niederhoffer’s NYCO Renaissance Ltd. and architect Gene Kaufman—“have filed a reorganization plan for consideration…. The board reserves the right to support a specific plan once a plan or plans are filed with the court or presented to the board … A status conference on the case is scheduled for Wednesday.”
Posted July 15, 2015
