Grove Offers Plan to Run 2 Facilities : Stage: According to the proposal, the company would continue managing the Gem and Festival venues. There’s no provision for paying off subscribers or creditors.

GroveShakespeare, which canceled its 1993 season and collapsed in all but name last month, has proposed that it continue managing the city-owned Gem Theatre and Festival Amphitheatre. But the proposal makes no provision for the company to produce its own shows, offer rebates to its subscribers or pay its creditors.

The plan--basically, GroveShakespeare would rent the facilities to others--came in response to city staffers who wanted some assurance that when the City Council awarded a recent grant to the theater company, it was not throwing good money after bad.

“I guess you’d call it a plan,” deputy city manager Mike Fenderson said earlier this week. He characterized it as “sketchy” but said he did not mean that to be disparaging.

“The City Council gave them $11,000 with no strings attached. The main thing we wanted to know,” Fenderson said, “is that we weren’t giving them money to help them go out of business.”

The plan submitted by Tom Moon, the Grove’s acting board president, projects a $33,000 budget through the end of December: expenditures of $22,000 for one full-time and two part-time salaries; $6,000 for lease payments on the Gem and the amphitheater, and $5,000 for miscellaneous expenses.

It projects only $14,500 in earned income: $10,000 from anticipated facility rentals, $1,500 from costume rentals and $3,000 from children’s theater presentations. The rest--roughly $18,500--is expected to come from donations, other unidentified rentals and two hoped-for productions that are not named.

“Letters are going out to all the creditors and subscribers this week,” Moon said, “telling them we appreciate them and we’re working to keep the theater alive.” If any of the 1,432 subscribers wants a rebate, he noted, “they should stand in line with the other creditors.”

Moon said the theater company has fielded calls from 110 subscribers so far inquiring about the value of their season tickets and the theater company’s future plans.

Moon had said earlier, in the wake of the season cancellation, that the four-man board of trustees was considering bankruptcy either through a Chapter 11 reorganization or a Chapter 7 liquidation.

But he now maintains the Grove will not take such drastic action unless it is forced to by creditors, which seems unlikely. One of the larger creditors--the Lithocraft printing company in Anaheim--has told The Times, for example, that given the Grove’s meager assets, trying to press a claim in court may not be worth the expense.