The Philadelphia Orchestra Association (POA) has won court permission to exit bankruptcy.
The orchestra's attorney announced Thursday that the POA's reorganization plan had been approved by the U.S. Bankruptcy Court of the Eastern District of Pennsylvania.
"In receiving plan confirmation, we are now well positioned to rebuild our audiences, rebuild our donor base and grow our endowment," said Richard Worley, POA Chairman, in a statement.
On April 16, 2011, the symphony filed for Chapter 11 bankruptcy protection due to its rapidly dwindling operating budget and a structural deficit of $14.5 million. It was unprecedented among the major orchestras in the U.S.
Under the plan, the 112-year-old symphony will shrink from 105 musicians to 95 and cut their salaries by about 15 percent. The orchestra will also get a break on its rent from the Kimmel Center.
The POA has already raised the $3 million to pay debts and expects to emerge from bankruptcy by the end of July.
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