Friday, December 5, 2008

Virginia Symphony mulls bankrputcy, requests loan from Norfolk agency

The Virginia Symphony is asking for a $1 million loan from the Norfolk Economic Development Authority. The orchestra says it may be not be able to cover the next paychecks for its 76 musicians and is contemplating filing for Chapter 11 bankruptcy.

This comes two days after the Norfolk-based orchestra, which began the season with a $1.5 million deficit and has exhausted its line of credit, announced 20 percent reductions in staff salaries and cancellation of several spring concerts in an effort to cut $500,000 from its current operating budget of $6.5 million.

Norfolk Mayor Paul Fraim, calling a $1 million loan of public funds "beyond what would be prudent," instead proposes a short-term $500,000 line of credit, Teresa Annas reports in The Virginian Pilot: