City Opera Faces Its Biggest Challenge Since Bankruptcy

Mr. Niederhoffer made up fund-raising shortfalls himself by writing big checks; company officials said that he had given more than $8 million in recent years to the company. When he was asked if he would continue to offer the same level of support, he said, “I can’t commit to anything right now, but I will certainly do my best to support the company.”

Mr. Capasso said that the company was determined to live within its means, even if that meant scaling back. “In prior years there was a spending problem, not necessarily a fund-raising problem,” he said. “Now we have the opposite: The spending is very much in line; the fund-raising is not.”

Significant challenges lie ahead. The value of City Opera’s endowment fund dropped to $3.4 million as of the end of June 2017, down from $4.8 million the year before, according to an audited financial statement. The statement said that City Opera’s board had agreed to spend more than the authorized 7 percent of the fund to rebuild the company after bankruptcy, and that the board planned to replenish the fund.

During the bankruptcy case, questions were raised about the viability of the reorganized company. A filing by the New York State Attorney General’s office noted that the pending bequests meant that the new company would be “almost certainly financially viable in the short run” but added that “this cannot be said for the plan’s financial sustainability beyond its first few years.” The reorganized company faced significant headwinds: It has had to repay more than $1.2 million to creditors owed money in the bankruptcy, officials said in a court filing, even as it was starting from scratch.

But Mr. Rosen, the new chairman, said that he expected to be able to build up the board and a new group of donors. The company just hired a new development director.

“I think that success begets more success,” he said. “I would hope and anticipate that with the success of ‘Stonewall,’ you build up that head of steam for your next event.”

Article source: https://www.nytimes.com/2019/02/15/arts/music/city-opera-bankruptcy-challenge.html?partner=rss&emc=rss