"The $2.9 million projection referenced in the most recent draft of the strategic plan reflects only bankruptcy-related professional fees and was based on an estimate of reasonable progress in the case," orchestra spokesman Matt Broscious wrote in an e-mail.
He said, "There are any number of factors that can impact those costs . . . The orchestra does not plan on issuing a revised projection for costs of reorganization until sometime in early fall. With the goal to provide ongoing financial sustainability for the orchestra, the bankruptcy process represents a set of onetime, short-term costs that will help us do that."
The largest invoices to date come from the orchestra's bankruptcy lawyers at Dilworth Paxson L.L.P., whose chairman, Joseph H. Jacovini, is an orchestra board member. Dilworth has so far billed $1.05 million, including work performed in the run-up to the April 16 filing. Its invoice shows billable hours by 12 lawyers and two paralegals.
The firm has an arrangement with the orchestra for payment that no other contractor enjoys, according to the spokesman: The orchestra board has agreed to personally cover all of Dilworth's fees. That "demonstrates their commitment to this organization and its future," said Broscious, a consultant from Brian Communications.
When the court considered whether the Dilworth firm had an actual or potential conflict of interest and should be dismissed from representing the association, Dilworth lawyer Lawrence G. McMichael told the judge that Jacovini had been "walled off" from the case within the firm and had recused himself from all discussions surrounding the bankruptcy.
Dilworth has made a $75,000 charitable donation to the orchestra, McMichael said.
The second-largest invoice comes from Alvarez & Marsal Holdings L.L.C., the association's bankruptcy adviser, with a total of $833,365.
