Musicians Accuse Philadelphia Orchestra Management Of Improperly Categorizing Donations
PHILADELPHIA (CBS) - A national musicians' pension fund is expected to claim in bankruptcy court today that the Philadelphia Orchestra Association "improperly characterized" how millions of dollars in donations could be used. It follows three-days of mediation involving musicians and management on a new labor contract.
When management, the Philadelphia Orchestra Association, filed for bankruptcy last April, one of its stated objectives was to seek relief from its obligations to the national musicians' pension fund. But the American Federation of Musicians, or AFM, says leaving it would trigger up to a $35-million withdrawal liability.
At today's session, AFM lawyers are expected to tell the court that the Association "improperly characterized" at least $20-million in donations as "restricted endowments."
AFM President Ray Hair says, "the donors are names that you would recognize immediately," and those donors, estates and foundations will receive requests for discovery.
If the pension fund is eliminated, the fund wants to ask donors in court whether their endowments were "unrestricted," which could be used to satisfy the pension liability.
Reported by Steve Tawa, KYW Newsradio
