Philadelphia Orchestra's board votes to file for bankruptcy

Citing the orchestra's "fantastic imbalance" between income and expenses and the scale of the rescue plan, Board Chairman Richard B. Worley said Friday: "It isn't going to be easy, but I believe we can do it."

Management has retained Brian Tierney, former publisher and chief executive officer of now-defunct Philadelphia Media Holdings L.L.C., former owner of The Inquirer, to handle its public relations; its bankruptcy consultant is Joseph Bondi, who succeeded Tierney as interim CEO of the media company.

Musicians strongly oppose the filing, which could jeopardize funding of their pension, and they staged a showy (if harmonious) protest Saturday. As board members filed into the lobby of 1701 Market St., home of the law firm Morgan, Lewis & Bockius L.L.P., a string quartet serenaded them with Schubert and Mozart. Musicians handed them leaflets encouraging a "no" vote.

Security guards repeatedly asked the crowd of 60 active and retired players to leave, but the music continued. Finally guards said police were on their way, and the briefly tense climax dissolved: No police arrived, and the play-in ended as the board meeting began.

Management has weighed bankruptcy for more than a year since deciding it no longer wanted to participate in the players' defined-benefit pension fund. Doing so would trigger liability of $25 million (the exact amount is in dispute), but participation represents an annual obligation of about $3 million that leadership believes it can shed in bankruptcy proceedings, along with other contractual obligations it says would save it more than $40 million over five years.

At least one major Philadelphia philanthropy had encouraged the bankruptcy solution for several years, suggesting that support hinged on reorganization. Another major philanthropist and orchestra board member initially opposed the move, but has reconsidered.

"I was not in favor of it, but I don't see any other solution at this point. We're running out of money," said Carole Haas Gravagno (whose husband, Emilio Gravagno, is an orchestra retiree). "There are people in the community who want to help this process, and we're not going to let them down."

Initial listener reaction was less enthusiastic - especially given the suggestion that a bankruptcy filing could prompt players to audition for other ensembles.