On behalf of Law Offices of Mark M. Kratter, LLC on December 27, 2012
Most Connecticut business owners don't expect severe financial problems when they first open their doors. However, when companies are forced to negotiate contracts with others, sometimes delays in those talks can lead to unforeseen costs or financial issues resulting in the decision to file for Chapter 7 protection. Such is the case for a long time orchestra. Negotiations over a contract continued over a lengthy period of time, causing severe financial stress for the orchestra and ultimately their decision to file for bankruptcy.
The CEO for the orchestra released a statement about the filing. She claimed the talks dragged on for so long it caused serious financial problems, and their fundraising efforts were diverted because of the negotiations. For most of 2012, Orchestra Nova and the musician's union had been trying to come to an agreement over salary increases and proposed changes to their contracts. The orchestra wanted to change from the typical year-to-year contracts to a per concert contract. The artistic director of the orchestra felt the new contracts could bring 'renewed emotion' to the performances, but the musician's union did not agree because they felt it would cause their lives to become unstable.
The impasse caused the artistic director to resign mere days before the beginning of their new season, in turn forcing the cancellation of the orchestra's opening performances. Soon after, the orchestra announced the cancellation of their entire season. The lengthy negotiations and cancellations caused severe problems for the orchestra and they were ultimately unable to continue.
When a Connecticut business owner is involved in lengthy contract negotiations, it can take a heavy toll on their finances. When this happens and there is no sign of an agreement, business owners can look to the option of Chapter 7. Doing so can help them discharge many of their debts and allow them to finally gain regain their financial freedom. While no one ultimately wins, it can help release someone from the stress and toll serious financial problems can take.
Source: UT San Diego, "Chamber Orchestra Files for Chapter 7 Bankruptcy," Angela Chen, Dec. 11, 2012
