Prince Music Theater
1412 Chestnut Street
Philadelphia, PA 19102
www.princemusictheater.org
NEWS
For information please contact:
Marjorie Samoff, by email
Matthew A. Hamermesh 215 496-7054
July 12, 2012 Philadelphia
FOR IMMEDIATE RELEASE
Prince Music Theater and TD Bank Reach Settlement
Thanks to a group of friendly donor/investors, the Prince Music Theater and TD Bank have finalized a settlement agreement that brings closure to four years of litigation and paves the way for the Prince to return to full artistic operations.
The investor/donor group, 1412-14 Holdings LP, closed on July 11 on the purchase for $3.25 million of all of TD Bank’s mortgages and claims, with a face value of $6.3 million. Now, 1412-14 Holdings LP stands as the sole mortgage-holder. Five donor/investors funded the settlement and buy-out of the notes: Ron Caplan, Ira Lubert, Ronald L. Kaiserman, Karen Lotman, and Howard L. Morgan. All the donor/investors in 1412-14 have been donors to the Prince.
The Prince and TD Bank had reached an agreement in April of this year, working with a federal mediator, to settle all outstanding claims. Yesterday’s purchase of TD Bank’s notes by 1412-14 Holdings LP concluded the settlement under the terms of that agreement. All the parties worked together with TD Bank to resolve this matter positively, and to secure the Prince’s future as a theater.
“We are absolutely delighted to have completed this settlement,” commented Ronald L. Kaiserman, Founding President and current Prince Board Chair. “Now, we can move forward with confidence to plan for the future. All of our partners and tenants can rest assured that their contracts will be fulfilled, and we can ensure continuity of operations for next year. We will soon be seeking Court approval of our Plan of Re-organization, and aim to emerge from Chapter 11 Bankruptcy as quickly as possible.”
As part of the process under the Bankruptcy code, the Prince’s attorney, Matthew A. Hamermesh, of Hangley Aronchick Segal Pudlin & Schiller, P.C. today conducted a 363 auction with open bidding. The top bid came from 1412-14 Partners, and included an advantageous long-term lease under which the Prince will continue to operate the theater and can return to producing. The Union League also made a strong and friendly bid, including a long-term lease to the Prince, and other favorable terms, which is under consideration.
Discussions are currently underway concerning these two proposals. The Prince will finalize its selection and seek the approval of Bankruptcy Judge Magdeline Coleman at a hearing next Wednesday, July 18. Thereafter, the process could take two – three months to conclude.
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To read this release offline, click here to download a PDF version.
To read the related Philadelphia Inquirer story published July 13, 2012, click here.
