The Nashville Symphony and its creditors announced a deal on Monday to restructure its debt and avoid forclosure on the Schermerhorn Symphony Center.
“After months of discussion with our lenders, we are pleased to have reached a comprehensive resolution that represents the best path forward for all parties involved,” said Ed Goodrich, chairman of the Nashville Symphony Association. “With a healthier balance sheet, the Symphony will be in a better position to pursue its cultural mission of engaging the community, enriching audiences and shaping cultural life through musical excellence and educational vision.”
Terms of the settlement were not released, but a new $20 million mortgage was filed with the Davidson County Register of Deeds just before noon on Monday.
Multiple sources told The City Paper that Bank of America will write off between $30 million and $40 million of the more than $80 million in debt related to the construction of the Schermerhorn. It was not announced where the gap between the new mortgage and the old loan will be made up, but the Nashville Business Journal reported on Saturday that longtime patron Martha Ingram was involved in the final settlement.
As first reported by The City Paper, the two sides reached an agreement last Friday on a new deal after the symphony began cutting costs, laying off a number of food service employees.
Goodrich hinted at more cuts to come in a statement.
“The symphony still has a lot of work to do to further reduce costs and will continue to need significant financial support from our donors in the years ahead to remain sustainable over the long term,” he said.
The symphony began negotiations with its musicians union last week. The current contract expires on July 31.
Mayor Karl Dean praised both sides for the deal.
“I commend and appreciate all the parties involved for the way they have worked to bring about this very positive result,” he said. “I also want to say a special word of thanks to the heads of the local banks that were involved for their leadership in this effort.”