Louisville Orchestra files Chapter 11

[joshwirt]

Very sad day for the Louisville Orchestra....

http://www.bizjournals.com/louisville/n ... er-11.html

[Mojo workin']

Does anyone know if the tuba chair will remain, being one of the 55 full time players?

Would be interested to hear how many of their 'suits' will be eliminated.

[elimia]

If you aren't playing bgrass, country, or classic rock, you ain't doin' that well musically in KY. Very sad day.

[tubasinfonian]

Sad news...

[imperialbari]

http://www.bizjournals.com/louisville/n ... udges.html

Saw this on another list and noted that judge went with the musicians.

Klaus

[smyoung]

Let's hope Daryl has this gig for as long as he wants it. What a great guy!

[Thomas Maurice Booth]

Here is a bit of an update. Seems like having only $15,000 cash on hand is a serious issue.

http://nky.cincinnati.com/apps/pbcs.dll ... 3/12300316" target="_blank

TMB

[pgym]

Here is a bit of an update. Seems like having only $15,000 cash on hand is a serious issue.

Not nearly as serious as the board burning countless hours, energy and who know how many tens of thousands of dollars on legal proceedings rather than on fund raising.

[David Schwartz]

The orchestra's IRS Form 990 (You can find it on line.) shows that the vast majority of the $9 million endowment is restricted. In authorizing its bankruptcy filing, the board of the orchestra is, perhaps, keeping mindful of its fiduciary obligations to the donors of restricted endowment gifts. But how can or how will the board, or the bankruptcy court, apply or dispose of those funds if there is no orchestra?

If you ever serve on an orchestra board, be careful about accepting restricted donations. If you ever give money to an orchestra please, if you love the institution, don't endow the tuba chair, make unrestricted donations.

[pgym]

The orchestra's IRS Form 990 (You can find it on line.) shows that the vast majority of the $9 million endowment is restricted. In authorizing its bankruptcy filing, the board of the orchestra is, perhaps, keeping mindful of its fiduciary obligations to the donors of restricted endowment gifts.

While that may be true, as Judge Stosberg found in his ruling against orchestra management's petition to suspend the CBA, management failed to show that it could not tap the monies invested by the orchestra's foundation, which--as Judge Stosberg found--are effectively controlled by the orchestra by virtue of management's right to appoint the members of the foundation's boards of directors; and, the restrictive nature of some of the endowment monies notwithstanding, there is nothing that prevents the orchestra from using the foundation's assets as collateral against a loan.

[Incidentally, Part X, line 27 of the 2008 Form 990--the most recent form posted on the Orchestra's website reports "unrestricted net assets" in the amount of $2,774,562, "temporarily restricted net assets" of $1,524,715, and "permanently restricted assets" of $8,798,242. Given orchestra management's control of the foundation, a cynic might wonder whether or not management orchestrated the refusal of the foundation's board to accede to management's purported request to post collateral for a loan.]

[pgym]

How much are you planning on offering to loan them?

How much you got?