The Philadelphia Orchestra has officially emerged from
bankruptcy. In June a US bankruptcy court judge approved a
reorganisation plan that will see the orchestra reduce the number
of musicians from 105 to 95 and cut their pay by 15 per cent.
The Philadelphia Orchestra Association said in a statement that it had addressed more than $100m in claims, debts and liabilities with a settlement of $5.49m. It will pay $4.25m according to an agreed schedule, with the rest distributed according to a multi-year plan.
The orchestra has also received a rent break from its main venue, the Kimmel Center, and changed its pension arrangements.
The orchestra became the first major US orchestra to file for Chapter 11 bankruptcy in April 2011. Having reorganised its finances, the orchestra is keen to turn attentions to its 2012–13 season. A new music director, Yannick Nézet-Séguin, joins the orchestra in October.