
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: October 17, 2013
Partner
201-896-7095 jglucksman@sh-law.comThe iconic New York City Opera, a top cultural and historic attraction in the city for more than 70 years, has announced it will be closing its doors and has filed for bankruptcy protection.
After its attempt to raise $7 million through aggressive fund-raising efforts failed, the company said its only option to overcome its financial shortfalls was to file for protection under Chapter 11 of the bankruptcy law. The struggling opera company had sought to raise these funds by September 30, but spokeswoman Risa Heller said that only about $2 million had been donated, plus an additional $301,019 in pledges.
“New York City Opera did not achieve the goal of its emergency appeal,” Heller said. “Today, the board and management will begin the necessary financial and operational steps to wind down the company, including initiating the Chapter 11 process.”
The city opera ran into financial difficulties as a result of several poor decisions by its board of directors, CBS News reports. This includes the board’s choice to close the opera for the 2008-09 season while its auditorium underwent reconstruction. The company has also been criticized for hiring Gerard Mortier as artistic director, who later backed out before the season began. The board’s fateful decision to leave the Lincoln Center after the 2010-11 season in favor of playing at various venues throughout the city also led to a steep decline in revenue. Lastly, records show that City Opera’s endowment has shrunk from $48 million in 2008 to $5.07 million at the end of June 2012, the New York Times reports.
The company filed for bankruptcy protection with the United States Bankruptcy Court in the Southern District of New York and listed assets of $7.7 million and liabilities of $5.6 million, including pension obligations. In addition to its pension responsibilities, the city opera listed its largest creditor as the New York City Ballet. The ballet has a $1.6 million claim against the opera company.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!