Pasadena Playhouse Emerges From Bankruptcy

After shedding over $1 million in debt, the Pasadena Playhouse made it known last Thursday that it has successfully come out of bankruptcy.  Its immediate plans are to start a constant and rigorous fundraising campaign in order to reclaim its place as one of the oldest and most respected theater companies in the United States.

Thanks to a generous $1 million pledge the Playhouse received from two anonymous donors, the Playhouse has the funds it needs to stage a comeback production by this October, according to artistic director Sheldon Epps.  This will be the Playhouse’s first production since February, when it closed its doors five play shy of 2010 season and sadly letting go of about thirty staff members.  

Director Stephen Eich was quoted as saying, “The most important thing is that the organization took some drastic necessary steps to get rid of this legacy of debt that has haunted us for many years.  We can begin contemplating how to bring [the theater] back carefully, deliberately and slowly, and not have to worry about the bank loan and interest and creditors.  That's something very new for this theater.”

Last Wednesday, U.S. Bankruptcy Judge Thomas Donovan approved a reorganization plan that effectively eliminates all the Playhouse’s debts, with the exception of the obligation to present all its 2010 subscribers with tickets for the number of performances they had originally bought.

The anonymous pledge requires the Playhouse to raise an equal amount, $1 million, within the next twenty-four months.  As the money comes in, the donors will release the pledge funds dollar-for-dollar.  According to Epps, Wells Fargo has agreed to recommence making payments on earlier grants now that the Playhouse has come out of bankruptcy.  It finally looks as though the curtain won’t come down soon on the old Pasadena Playhouse.

 

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