The Nashville Symphony’s creditors are reportedly moving forward with foreclosure of the Schermerhorn Symphony Center. According to the Nashville Business Journal, the Bank of America has scheduled an auction for the end of June.
To build the hall, the NSO took out $102 million in construction bonds. Six years later, in 2010, the building sustained $40 million worth of flood damage, a portion of which was not covered by insurance. At the same time, donations to the orchestra have dropped.
In March, the orchestra announced it was trying to restructure its debt; a letter from its officials dated yesterday claims those talks are still ongoing. The orchestra can still block the foreclosure and sale by declaring bankruptcy before June 28.
When asked if it would intervene, as with the dispute over the sale of artwork given to Fisk University, the Tennessee Attorney General’s office issued this response:
“The Attorney General’s Office is not actively involved in the Symphony’s financial issues at this time. There are some scenarios, such as a bankruptcy filing, in which the Attorney General’s office could be involved to protect the public interest. The Office is monitoring the situation.”
update 6/6/13 4:35 pm:
statement from the Nashville Symphony confirms that an auction has been scheduled, but says negotiation are still underway.
This is a highly sensitive and fluid situation and we cannot speculate on the outcome. Our preferred course of action remains to reach an agreement out of court. That said, the Symphony Board understands and accepts its responsibility to act as necessary to protect the assets of the Symphony. We are preparing appropriate measures to help ensure that the Symphony continues to operate normally and pursue its important cultural and educational mission.