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San Diego Bankruptcy Blogs from January, 2013


The San Diego Chamber Orchestra, the Orchestra Nova, has chosen to file for bankruptcy in lieu of rising debts partly caused by the orchestra's failure to resolve a change in salaries negotiation with its primary employee's union. The Orchestra Nova, as the chamber orchestra is titled, filed for Chapter 7 and hopes that it will be a promising step towards recovering their financial health in the future.

Like many other organizations, the orchestra struggled to strike a deal with their employee's union. The Local 325 branch of the American Federation of Musicians had entered negotiations with the orchestra many months earlier after the orchestra had said it was going to shift the musicians' contracts from annual contracts to concert-by-concert contracts. The musicians were unwilling to agree to the concert-by-concert contracts and representatives for the union said that guaranteeing paychecks in this manner was grossly unfair and too unstable.

As a result of the disagreements between the union and the orchestra, the artistic director for the orchestra resigned from the orchestra two days before the start of concert season, forcing the orchestra to cancel its upcoming shows. All of these factors contributed to the orchestra's decision to seek the court's intervention. According to sources, the Orchestra Nova will not make any performances during the next calendar year while it is trying to resolve its finances. The Orchestra Nova heads to bankruptcy court but leaves San Diego residents with the comfort of knowing that live orchestral performances will still continue in San Diego via the San Diego Winds.

This is not the first orchestra in our country to file for bankruptcy in recent years. The Philadelphia Orchestra Board approved a Chapter 11 bankruptcy filing in 2011 after running low on cash and running a deficit for a long period of time. The Philadelphia Orchestra, which has been around for 111 years, did not make enough revenue from season's ticket sales, fund-raising, and endowment income to cover their operating costs. When the economy is difficult, art organizations often have a difficult time figuring out how to stay viable especially in this new era of "on demand" entertainment through technology.

Reports did not disclose the amounts of assets or liabilities that were listed in the San Diego Chamber Orchestra's Chapter 7 filing. By choosing to file for Chapter 7, the orchestra's unsecured debts will be eliminated and discharged. To learn more about this popular type of bankruptcy and how you will benefit from the help of a San Diego bankruptcy attorney, call San Diego Legal Pros! Our firm provides caring, effective help for those who are struggling with an overwhelming financial situation, and we will take the time to help you determine which type of debt relief is right for you.

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