Individuals and families aren’t the only ones facing difficult financial times. Rumors of financial struggles surrounding Nashville’s Schermerhorn Symphony Center were realized this week. Recently, whispers concerning the Schermerhorn Center and the possibility of bankruptcy were circulating throughout Nashville. Now, it has been confirmed that the Schermerhorn Symphony Center has a deadline in April to make their outstanding payments or begin the foreclosure process.
Saving The Symphony
To delay the foreclosure process, which would take approximately 3 weeks, the Nashville Schermerhorn Center could potentially file for bankruptcy. In fact, The City Paper has reported that the Schermerhorn Center is still seeking the guidance of bankruptcy attorney Robert Mendes. Despite attempts to reach out to lenders to restructure outstanding debt, the Schermerhorn Center hasn’t received much cooperation.
In 2004, the Schermerhorn was build with $102 million financing. Lenders including the Bank of America who funded the project are now feeling a sense of urgency throughout the negotiations. According to bankruptcy attorney Bill O’Bryan, lenders to the symphony are “walking a tight rope.”
The financial struggles began in May 2010, when downtown Nashville was covered by a historic flood. The Cumberland River crested at two-century record high, bringing 24 feet of water into the Nashville Schermerhorn Center. The floodwaters brought $40 million in damage to the symphony center alone. The damages along with the drop in donations are what has caused the current financial crisis for the symphony.
While the Schermerhorn could still reach an agreement with lenders, the threat of foreclosure looms closer than ever. While bankruptcy remains an option, several attorneys say that they don’t expect for the Nashville Symphony to file for bankruptcy anytime soon.
With seven Grammies and an improving national reputation, the Nashville Symphony is expected to be able to maneuverer around foreclosure and bankruptcy options. After all, this isn’t the first time that the symphony has faced financial problems. In the 1980s, the Nashville Symphony actually declared bankruptcy, but was able to make a comeback in 1995 thanks to Amy Grant and a chain of sold out Christmas concerts.