The Philadelphia Orchestra, one of the leading orchestras in the world and renowned for its acclaimed performances, historic international tours, and best-selling recordings, today announced the decision of its Board of Directors to file for Chapter 11 bankruptcy protection in the United States Bankruptcy Court. This decision was based upon several critical financial challenges currently facing the organization, specifically its rapidly dwindling operating funds and a structural deficit of $14.5 million. The acclaimed Orchestra action makes it the first major US performance ensemble to do so during the nation’s current economic turmoil. Although The Philadelphia Orchestra has no long-term debt, it is operating at a significant loss based upon declining ticket revenues, decreased donations, eroding endowment income, pension obligations, contractual agreements, and increased operational costs. The decision to file will allow The Philadelphia Orchestra to continue to make incredible music while the organization and its finances are restructured. All remaining concerts for the 2010-11 season, including this evening’s performance of Mahler’s Symphony No. 4, will go on as scheduled. “We have made the difficult, but necessary, decision to enter into a reorganization process,” said Richard B. Worley, chairman of The Philadelphia Orchestra Association’s (POA) Board of Directors.
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