Mark Schwartz is a lawyer who believes The Philadelphia Orchestra’s “plodding” bankruptcy court proceedings don’t bode well for the organization. In an article for philly.com, he compares the orchestra’s situation to that of the Barnes Foundation—a case in which he blames a misguided board of directors for prematurely forcing its organization into court. Barnes is an educational art and horticultural institution that sought court approval to move from a suburb of Philadelphia to a more city-accessible site under the pretense of financial hardship. The move would directly violate the organization’s “indenture of trust,” which stipulates its art holdings are not to be relocated.

Schwartz’s criticism is that Barnes claimed an inability to raise $1.5 million for annual costs, but mustered $150 million once the relocation of the gallery was approved. Fearing the Philly Orchestra may be guilty of something similar, Schwartz points out that bankruptcy court is not somewhere organizations should seek to be. Short of a quick in-and-out to “shed obligations and return to business,” prolonged litigation could threaten the orchestra’s stability as well as its reputation. Players are rumored to be coursing the job market for more stable positions, and subscribers share in the frustration of their orchestra’s turmoil. Who is really benefiting when a near-bankrupt orchestra spends hundreds of thousands on legal fees? View Full Article »