Earlier this month, with the two sides at an impasse over a new contract, orchestra management withdrew its most recent offer and announced that it would consider declaring bankruptcy.
Yesterday, the bankruptcy lawyer hired by the orchestra met with its board to discuss its options. Afterwards, officials told the Courier-Journal that a Chapter 7 bankruptcy, in which the group would liquidate its assets and cease to exist, is more likely than a Chapter 11 bankruptcy, in which it would reorganize but would continue to operate.
In either case, the lawyer advised the board to delay a filing until it runs out of cash in early April.
The only way to prevent bankruptcy, board president Joe Pusateri told the paper, would be for the musicians to accept a major restructuring of their contract and the orchestra's operations.
The orchestra nearly declared bankruptcy in 2003 before reaching a last-minute deal with musicians with the help of a federal mediator.Classical Music