Staring down $40 million in flood damage to Schermerhorn Center---to say nothing of its 60 percent drop in donations---the Nashville Symphony has reached out to Bank of America Corp. to try and restructure the Schermerhorn's mounting debt.
As Martin Z. Braun writes on Bloomberg, "the symphony drew on a credit line from the bank last week to buy back $82.3 million of floating-rate bonds from a $102 million financing of the Schermerhorn Symphony Center in 2004."
A letter posted on the Nashville Symphony's website by Ed Goodrich and Alan D. Valentine (board chairman and president/CEO, respectively) argues that by forcing Bank of America to put up the money for a mandatory buyback, this negotiation will receive the urgency it so clearly deserves.
"Our preferred course of action is to reach an agreement out of court," wrote Goodrich and Valentine. "That said, the board understands and accepts its responsibility to act as necessary to protect the assets of the symphony."
Classicalite, too, hopes that both orchestra and bank can indeed settle amicably. The last thing we want is another American orchestra going under.
At the height of the Cumberland River's cresting in May 2010, 24 feet of water filled Schermerhorn Center, completely submerging her lower level. Various mechanical and electrical equipment was destroyed, along with several grand pianos and a full concert organ.
