Jump to Navigation

N.Y.C. Opera may file bankruptcy

The New York City Opera, an operation that has been around for approximately 70 years, is facing financial difficulties that may force it to file bankruptcy soon if increased fund raising efforts are unsuccessful. There are evidently only a few more days for the opera company to raise the $7 million required to complete its current season, including three remaining productions. To continue operations for productions planned for next year's season, $13 million more would have to be raised.

In recent years, the scale of the opera's operation has been dramatically reduced from 20 operas produced per season to the current four, along with a change in the status of musicians employed by the company from employees to independent contractors, a move that was the subject of controversy at the time. The yearly budget was also cut from a height of $31 million to the current level of $13 million to avoid incurring unmanageable debt. The opera company also abandoned its prior prestigious venue at Lincoln Center.

When a business or non-profit entity is unable to continue to pay its existing bills, a Chapter 11 bankruptcy allows it to attempt a reorganization and get a fresh start, getting out from unviable existing contracts and arrangements. Whether a bankruptcy filing by the New York City Opera would mean such reorganization or a shutdown is not clear. In any event, it would enable the management to take a new look at what options might be economically viable without being tied to existing contracts and commitments.

For a business or cultural entity considering bankruptcy, such a filing can represent the only remaining hope of continuing the endeavor and doing so on terms that are not economically ruinous in today's troubled economy.

Source: NJ.com, "New York City Opera faces bankruptcy" Ronni Reich, Sep. 27, 2013

No Comments

Leave a comment
Comment Information
Subscribe to This Blog's Feed


Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

FindLaw Network


Law Office of Ronald V. De Caprio BBB Business Review


Law Office of Ronald V. De Caprio 65 West Ramapo Road Garnerville, NY 10923 Phone: 845-406-4201 Toll Free: 866-936-8113
Map & Directions