Why would the Philadelphia Orchestra - an 111-year-old institution sitting on $140 million in endowments and no debt - file for bankruptcy?
Lawrence McMichael of Dilworth Paxson, lead counsel for the orchestra, said: "No one should be questioning why."
He offers this explanation:
* The orchestra "would have been out of cash by mid-May" because of money committed to musicians' salaries and pension, rent to the Kimmel Center and other operating costs. "This notion that our assets exceed our liabilities is absolutely wrong," said McMichael, who said some endowment money is sitting in trust funds and is inaccessible, and other money can be used only for specific "endowed" purposes - not day-to-day operations.