More than two months of talks have yielded a tentative agreement between the Nashville Symphony Association and its musicians. No details are being disclosed just yet but a source tells the Scene's John Pitcher the deal "resolves a lot of issues."
SEE ALSO: The Symphony's short note on the agreement
The Nashville Symphony Association and Bank of America on Monday announced they have finalized a loan reduction agreement that the Symhony's board chairman says is "a comprehensive resolution that represents the best path forward for all parties involved." The parties did not release details about their deal, but sources say BofA's writedown is between $30 million and $40 million. In addition, the Symphony on Monday filed papers for a new $20 million mortgage.
“With a healthier balance sheet, the Symphony will be in a better position to pursue its cultural mission of engaging the community, enriching audiences and shaping cultural life through musical excellence and educational vision," said Symphony Association Chairman Ed Goodrich.
That said, Goodrich added that the Symphony will be making more cuts in the near future to get its costs more in line with revenues. For more details, check out The City Paper's story.
SEE ALSO: Friday's first report of a deal
The financially troubled Nashville Symphony Association laid off its entire catering and dining staff on Monday in a cost-cutting move that followed a decision that food service was “not directly related to our core mission.” The City Paper has the story here.
The banks holding the Nashville Symphony's debt have given the latter a deadline of this week to repay that money or face foreclosure on the Schermerhorn Symphony Center. That could lead to the Symphony filing for bankruptcy, which the hiring of Bob Mendes of Frost Brown Todd would suggest is a serious consideration.
Sources have told Nashville Post reporter Ken Whitehouse that the lender group led by Bank of America is "evaluating legal options related to the 60-plus-member board’s oversight of the symphony’s finances, including any potential liability issues." But some of those board members say they didn't always have the information they needed to make the best decisions for the Symphony's future.
Various board members contacted by The City Paper over the past two weeks have stated that they had been unaware of the depth of the financial problems experienced by the organization until the symphony leadership announced the situation publicly three weeks ago.
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