Pasadena Playhouse emerges from Chapter 11 bankruptcy
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The Pasadena Playhouse said it emerged from Chapter 11 bankruptcy on Wednesday after a court in Los Angeles approved the theater company’s plans for reorganization. The company also said that it has received a matching pledge of $1 million by anonymous donors as part of its fundraising efforts.
Since shutting down its main stage in February, the Pasadena Playhouse has been searching for ways to pay down its debt, which recently stood at $2.3 million, most of it owed to subscribers, bankers and vendors.
In a statement issued on Thursday, Stephen Eich, the playhouse’s executive director, said that the company has created a plan ‘to resurrect the Playhouse from years of unbearable debts. Although we will be moving slowly in the future to ensure financial responsibility and stability, we will in fact be back.’
The law firm of Munger, Tolles, and Olson LLC is serving as the company’s pro-bono legal team, while Alvarez & Marsal is providing pro-bono financial advising. The playhouse had filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in early May.
The $1-million matching pledge comes from a group of anonymous donors, said the playhouse. The company hopes that the announcement will encourage other donors to step forward to match or exceed the $1-million gift.
The company said that plans for a fall 2010 production will be announced at a later date.
Check back throughout the day for updates on the Pasadena Playhouse.
-- David Ng