It's over.
The Orchestra entered Chapter 7, a liquidation bankruptcy proceeding. The bank, the primary creditor, recovered what it could, and in an act of goodwill, distributed some of the most important assets to local organizations.
M & T Bank has closed the books on what’s left of the Syracuse Symphony Orchestra.
The bank’s regional president Allen J. Naples announced the dispersal of the SSO’s assets to three community groups at a news conference this morning at the Onondaga Historical Association. The bank was the main secured creditor for SSO assets when it filed for Chapter 7 bankruptcy in May.
Naples said the orchestra’s instruments, including a Steinway piano, and computer and electronic equipment would be donated to the Cultural Resources Council of Syracuse and Onondaga County. The SSO’s sheet music, considered to be the most valuable asset, will be given to the Setnor School of Music at Syracuse University. Onondaga Historical Association will receive the orchestra’s archives, albums and paintings.
Rightly, the music library was seen as the most valuable asset. Without it, it would be impossible to ever re-assemble another orchestra in the future. A lot of that music is long out of print, and the years of musicians' markings on the parts (which in effect create a local edition of a piece) are irreplaceable.
The bank did the right thing, for the city and for themselves. They took their haircut, to be sure, and left the door open for something else to assemble itself in the future. The bank also bought a good deal of that intangible asset--goodwill--so difficult to build, so easy to destroy.
Once again, OS sez: 2012 cannot come soon enough. It will take sober grownups to set the country in motion and productive again, so that profits can be made to spend on important items like a local symphony. Until then, it's chinstraps on. We haven't reached the end of the orchestra closures yet. Louisville has yet to get back underway, and Philadelphia is still in BK. Whoo'da'thunk'it that the great Philadelphia Orchestra would wind up in BK court?
Colorado Symphony may be next.
Showing posts with label bankruptcy. Show all posts
Showing posts with label bankruptcy. Show all posts
Monday, October 3, 2011
Saturday, March 6, 2010
Time To Walk Away?
(Narrator's voice): Let me tell you a story...
A well-meaning family of modest means buys a house in a Midwestern city about seven years ago. It's in a less-than-nice neighborhood, let us say politely. But, it once was lovely and stable(before WWII blew the culture up), and showed real promise of coming back. After all, the banks were lending, and if enough urban homesteader types like these folks were to show up, people with classic middle-class values, they might create a momentum and bring the place back. The bank owned it, and were glad to have it as a paying asset. The family went through a pretty stringent qualification, if memory serves. It was not a 'liar loan', at least not from the family's point of view.
The well-meaning family moved in, happily. And steadily brought the big old house back to life, but refied along the way to cover the costs of major roof repairs, installation of a central climate control system, and some structural work that needed doing. They also bought a little frame house around the corner, renovated it, and the eldest son lived there until he married and moved away. It's a rental now.
These folks tried, as imperfect as they were. Really worked at both improving their own lot and the lives around them. One family member still runs a Saturday version of 'Sunday School', to see if some improvement can be made in a few lives, to open the door to the outside world to a few kids, many of whom have never seen much of the rest of the city.
The neighborhood did not 'come back'. The drug trade is more embedded than ever, with its handmaiden prostitution in open practice on the streets. It's as if the city administration has nearly abandoned these blocks, as the streets deteriorate, police coverage seems scarce. I've urged that someone get a carry permit, and carry, just for safety's sake. Falling on deaf ears, of course.
Because of the refi, done at the height of The Bubble, they owe about 90k on the house. Not much equity. $1200 payments, probably including taxes and insurance, faithfully paid each and every month. A look at their zip code on Google Real Estate shows them as a tiny island of solvency in a sea of foreclosures. Abandoned industrial property nearby not likely to ever reopen. Empty CRE not likely to be occupied anytime soon. Lots of boarded-up houses all around them.
[end of narration...]
Is it time to walk away? No villains here. Everyone, bank and family, gave it their best shot. How do they get out without being hounded by the bank, and having to file a BK? It's becoming a matter of physical safety now. In the end, better bankrupt than suffering a gunshot wound. But that's a really low-class set of choices to make.
OS thinks the best solution is: The owners hand the bank the keys, the bank hands the deed to the city, the city razes the house, and zones the lot 'commercial'. Maybe, in 2020, the economic tide has turned, and the area does come back. It's a corner lot, maybe a place for a green-grocer to located. Easier to sell it if it's an empty lot.
At least that way, the city doesn't have a crack house on their hands.
This blog gets some visitors who know about these things. Any ideas?
A well-meaning family of modest means buys a house in a Midwestern city about seven years ago. It's in a less-than-nice neighborhood, let us say politely. But, it once was lovely and stable(before WWII blew the culture up), and showed real promise of coming back. After all, the banks were lending, and if enough urban homesteader types like these folks were to show up, people with classic middle-class values, they might create a momentum and bring the place back. The bank owned it, and were glad to have it as a paying asset. The family went through a pretty stringent qualification, if memory serves. It was not a 'liar loan', at least not from the family's point of view.
The well-meaning family moved in, happily. And steadily brought the big old house back to life, but refied along the way to cover the costs of major roof repairs, installation of a central climate control system, and some structural work that needed doing. They also bought a little frame house around the corner, renovated it, and the eldest son lived there until he married and moved away. It's a rental now.
These folks tried, as imperfect as they were. Really worked at both improving their own lot and the lives around them. One family member still runs a Saturday version of 'Sunday School', to see if some improvement can be made in a few lives, to open the door to the outside world to a few kids, many of whom have never seen much of the rest of the city.
The neighborhood did not 'come back'. The drug trade is more embedded than ever, with its handmaiden prostitution in open practice on the streets. It's as if the city administration has nearly abandoned these blocks, as the streets deteriorate, police coverage seems scarce. I've urged that someone get a carry permit, and carry, just for safety's sake. Falling on deaf ears, of course.
Because of the refi, done at the height of The Bubble, they owe about 90k on the house. Not much equity. $1200 payments, probably including taxes and insurance, faithfully paid each and every month. A look at their zip code on Google Real Estate shows them as a tiny island of solvency in a sea of foreclosures. Abandoned industrial property nearby not likely to ever reopen. Empty CRE not likely to be occupied anytime soon. Lots of boarded-up houses all around them.
[end of narration...]
Is it time to walk away? No villains here. Everyone, bank and family, gave it their best shot. How do they get out without being hounded by the bank, and having to file a BK? It's becoming a matter of physical safety now. In the end, better bankrupt than suffering a gunshot wound. But that's a really low-class set of choices to make.
OS thinks the best solution is: The owners hand the bank the keys, the bank hands the deed to the city, the city razes the house, and zones the lot 'commercial'. Maybe, in 2020, the economic tide has turned, and the area does come back. It's a corner lot, maybe a place for a green-grocer to located. Easier to sell it if it's an empty lot.
At least that way, the city doesn't have a crack house on their hands.
This blog gets some visitors who know about these things. Any ideas?
Thursday, April 23, 2009
Gomer Pyle, Second Stanza
Sargeant Carter!! Sargeant Carter!! You'll never guess what just happened!!
GM will default, and finally do what should have been done long ago--head to bankruptcy court.
Now, how much money did the politicians hand these clowns in the effort to avoid the obvious?
Remember December, when Senator Corker tried to negotiate a deal that looked like bankruptcy, with the taxpayer playing a 'debtor-in-posession' role?
Remember how the head of the UAW, Gettlefinger, arrogantly rejected the deal, vilifying Corker in the process? Remember how he demanded to see the books of Toyota before he would consider a deal for GM?
When the press begins the crocodile tears, remember how GM got here. Remember the decades of shabby cars, rip-off financing, dealerships that made their fortunes with inflated prices on cars, parts, service, bogus fees, and general rank dishonesty.
They weren't too big to fail. They were too stupid and greedy to succeed.
GM will default, and finally do what should have been done long ago--head to bankruptcy court.
Now, how much money did the politicians hand these clowns in the effort to avoid the obvious?
Remember December, when Senator Corker tried to negotiate a deal that looked like bankruptcy, with the taxpayer playing a 'debtor-in-posession' role?
Remember how the head of the UAW, Gettlefinger, arrogantly rejected the deal, vilifying Corker in the process? Remember how he demanded to see the books of Toyota before he would consider a deal for GM?
When the press begins the crocodile tears, remember how GM got here. Remember the decades of shabby cars, rip-off financing, dealerships that made their fortunes with inflated prices on cars, parts, service, bogus fees, and general rank dishonesty.
They weren't too big to fail. They were too stupid and greedy to succeed.
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