Bankruptcy

Like several previous Philadelphia Orchestra conductors, Charles Dutoit appears to be leaving a bit wounded. After visiting for more than 30 years — as guest conductor, director of the orchestra's two summer seasons, and finally as chief conductor of the regular subscription concerts — Dutoit, who is 75, this week concludes a four-year appointment that encompassed the most troubled period of the institution's history. He'll no doubt return as a guest, though not for awhile, as he maintains a respectful distance while Yannick Nézet-Séguin launches his own music-director tenure in the fall.

When the Philadelphia Orchestra filed for Chapter 11 last spring, its leaders said the reorganization would cost $2.9 million in legal and administrative fees, and they predicted the orchestra would be out of bankruptcy in the latter part of 2011. The legal tab now looks likely to be triple that initial estimate, and the case is entering its second year. On April 16, 2011, the ensemble's 75-member board voted - with a few abstentions, and all five musicians on the board voting "no" - to become the first major U.S. orchestra to file for bankruptcy.

Lower Bucks Hospital in Bristol emerged from bankruptcy Thursday, two years after the 186-bed facility filed for protection from creditors. Bondholders, still owed $24.9 million, are expected to receive 35 percent of their claims, according to Moody's Investors Service. The hospital's bankruptcy plan was approved last month. Key to the bankruptcy plan was a $14 million loan, secured by the hospital's campus, through the Bucks County Redevelopment Authority. The hospital said it employs more than 900. - Harold Brubaker

Loyal buyers of Reisman pretzels need not worry: Although J. Reisman & Sons Inc., of Pennsauken, has filed for Chapter 11 bankruptcy, its pips, twists, rings, rods and minis won't disappear from store shelves. The family-owned company, which has been making pretzels for more than 75 years, received approval yesterday from U.S. Bankruptcy Judge Gloria M. Burns in Camden to use future receivables to keep the company rolling. "From what I understand, it's business as usual," said Arthur J. Abramowitz, a Cherry Hill lawyer who is representing the company in the bankruptcy proceedings.

WILMINGTON - The Roman Catholic Diocese of Wilmington has emerged from bankruptcy with the funding of a $77.4 million trust for victims of priest sex abuse. Attorneys told a Delaware bankruptcy judge that a check deposit and wire transfers had been made in compliance with Monday's deadline for funding of the trust. Under the diocese's reorganization plan, about 150 alleged abuse victims will share proceeds of the trust in return for releasing all legal claims against the diocese, its parishes, and affiliated entities.

The bankruptcy proceedings involving the owner of the Daily News and Inquirer have been assigned to a new judge, according to a filing made yesterday in federal bankruptcy court. Judge Jean K. FitzSimon had been handling the case since the company filed for Chapter 11 bankruptcy protection in February. Stephen Raslavich, chief judge of the Eastern District of Pennsylvania's U.S. Bankruptcy Court, will now preside over the case, according to the filing. Sources said that they believe that the case was reassigned because FitzSimon had health issues.

A bankruptcy judge in Philadelphia has approved a plan of reorganization for the Carlton House at 1801 John F. Kennedy Boulevard, ending what is believed to be one of the largest and most complex bankruptcy cases ever in this area. Judge David A. Scholl confirmed the plan Wednesday night. The limited partnership that owns the 30-story apartment, retail and office building, TM Carlton House Partners, will emerge from bankruptcy June 30 when the plan becomes effective, Lawrence G. McMichael, a Center City lawyer who represented the group in the case, said yesterday.

It will be weeks before a federal judge decides where the Bhopal gas disaster case will be heard - in the U.S. or India. It may be years before the Bhopal victims receive settlements, and perhaps a lifetime before some recover from injuries suffered in what has been called the world's worst industrial accident. Environmental disasters, occurring as sudden accidents or slow contamination, seem to be happening with ever increasing frequency. They all have several common features: exposure of persons, property and the environment to highly toxic substances, strict liability for polluters, extensive litigation and huge damage claims.

The Philadelphia Inquirer and Daily News took a big step toward exiting bankruptcy Thursday, when a federal judge approved the reorganization plan of the newspapers' parent company. Chief Bankruptcy Judge Stephen Raslavich approved the plan that calls for Philadelphia Newspapers L.L.C., which owns the papers and the website Philly.com, to be sold to the company's senior lenders for about $139 million. The senior lenders, a collection of about 30 financial institutions, are to settle on the sale by Oct. 8. The debtholders include Angelo, Gordon & Co., Credit Suisse, and Alden Global Capital.

Thirteen months after entering Chapter 11, the Philadelphia Orchestra Association on Wednesday night filed its plan for exiting bankruptcy. With consent - sometimes hard-won - now in place from key creditors, the orchestra's blueprint for recovery will be considered by U.S. Bankruptcy Court in the coming months. If the plan draws support and no objections from creditors, and Judge Eric L. Frank approves it, the orchestra expects to be out of bankruptcy by July 31. Orchestra leaders expressed optimism Wednesday about the group's future and said a lowered cost structure would help to pave the way to financial health.

Pennsylvania Frederick Cooper, doing business as Fred's Water Ice, also known as Frederick Augustus, 5349 Chester Ave., Philadelphia; Chapter 13; no schedules available. Phoenix Horizons Inc., doing business as Northeast Community Center, 2840 Holme Ave., Philadelphia; Chapter 11; no schedules available. New Jersey 16 N Osbourne LLC, 16 N. Osbourne Ave., Margate; Chapter 11; Assets, $531,000; Liabilities, $771,000. SOURCE: The Legal Intelligencer, U.S. Bankruptcy Court for the District of New Jersey.

Like several previous Philadelphia Orchestra conductors, Charles Dutoit appears to be leaving a bit wounded. After visiting for more than 30 years — as guest conductor, director of the orchestra's two summer seasons, and finally as chief conductor of the regular subscription concerts — Dutoit, who is 75, this week concludes a four-year appointment that encompassed the most troubled period of the institution's history. He'll no doubt return as a guest, though not for awhile, as he maintains a respectful distance while Yannick Nézet-Séguin launches his own music-director tenure in the fall.

Gregory J. Osberg stepped down as publisher and chief executive of Philadelphia Media Network on Friday afternoon, less than six weeks after the company was purchased by a group of local owners. Robert J. Hall, who has been PMN's chief operating officer, will replace Osberg as publisher and CEO of the company that operates The Inquirer, the Philadelphia Daily News, and Philly.com - a job he held previously for 13 years. Osberg, 54, said he would remain with PMN as an adviser on digital strategies and advertising sales.

Resolving the most quarrelsome aspect of its bankruptcy, the Philadelphia Orchestra Association has settled with the national musicians' pension fund that had threatened expensive and time-consuming litigation over the orchestra's withdrawal from it. The American Federation of Musicians and Employers' Pension Fund (AFM-EPF), which had filed a $35 million claim in the case, will drop all its legal challenges in exchange for $1.75 million from the orchestra. The fund did not immediately respond to a request for comment.

Resolving the most quarrelsome aspect of its bankruptcy, the Philadelphia Orchestra Association has settled with the national musicians' pension fund that had threatened expensive and time-consuming litigation over the orchestra's withdrawal from the fund. The American Federation of Musicians and Employers' Pension Fund (AFM-EPF), which had filed a $35 million claim in the case, will drop all its legal challenges in exchange for $1.75 million from the orchestra. The development allows the orchestra to approach bankruptcy Judge Eric L. Frank with an uncontested reorganization plan, which means - if the orchestra can wrap up talks with the Kimmel Center over a new lease - that it could be out of bankruptcy within 90 days.