There are many songs written about love and its many downfalls and triumphs. It can be an emotional rollercoaster with, hopefully, a positive outcome. While we may not hear many songs written about bankruptcy, the same could be said about the process.
When a business files for bankruptcy, the process may go through many ups and downs before a final plan is secured. Going through many bankruptcy hearings can seem frustrating, but it does have an end goal: get the company back on its feet and looking forward to a much brighter financial future.
Just because you have a plan written out and perhaps even some support from creditors, doesn’t mean a court will agree with it. The court’s goal is to make sure that the plan a company has proposed will actually withstand the test of time.
That’s the situation the New York City Opera is currently dealing with. While the company sponsoring their reorganization plan has made a proposal, the attorney general’s office says the entity hasn’t provided the evidence it needs to support the financial projections that they outlined. The assistant attorney general wants to make sure the plan is financially sustainable beyond just the first few years.
The group still has time to prove its case. Currently, the union representing the opera’s dancers, production staff and choristers has some objection to the plan. On the other hand, a committee that represents the unsecured creditors involved supports the plan.
The opera was shut down in 2013 with creditors being owed millions. There is hope that once the reorganization plan is accepted, the company can pay off creditors and re-launch with a starting budget of $5.5 million.
