SPAC said yesterday that it had withdrawn the package and was discussing a new agreement with Chesbrough's attorneys.

Mather has been replaced by Stephen Serlin, a physician from Glens Falls, New York. A search committee has begun interviewing candidates to replace Chesbrough.

SPAC announced in February that the New York City Ballet's annual residency would end after the 2004 summer season because it loses hundreds of thousands of dollars each year. The center later reversed that decision, announcing that the company would return in 2005, but has not addressed the status of future residencies. According to the state report, SPAC's lease requires it to present fine arts programs such as NYCB.