Stong balance sheet; big annual expenses -- why not file for bankruptcy and get the legal authority to make changes? As reported in the Philadelphia Inquirer, the Philadelphia Orchestra board (75 member strong) voted this past Saturday to file for bankruptcy protection.
While the Orchestra is actually in good financial condition on the balance sheet and will continue performances, the Board believes that the reorganization filing will help the organization address the cost of it's annual $3 million contribution to its employees' pension fund plus other contractual obligations of around $2 million a year. The Board also believes that this filing provides the opportunity to launch a big fundraising appeal that will strengthen its endowment of some $140 million.
While the Board claims this action is one of prudence (the actual standard for "responsible" board decision making) I certainly have to question the strategy of filing when the balance sheet is so strong and employee benefits are the target. This move will certainly be "one for the books" and we will all stand-by to learn what happens next.
This review will surely a wake up call for everybody.
Posted by: essay service | May 18, 2011 at 11:50 AM
One can certainly hope so.
Posted by: Mike Burns | May 18, 2011 at 08:22 PM