An article entitled “Pennsylvania Academy of Music, Union National cut deal” relates:
“The Pennsylvania Academy of Music and its former landlord, Union National Community Bank, have called it even. PAM has agreed to let the bank keep PAM’s entire $25,000 security deposit to cover back rent, fees and interest PAM owed from leasing 42 N. Prince St. The accord between PAM and the bank was approved Wednesday by U.S. Bankruptcy Judge Jean K. FitzSimon.”
WATCHDOG: When PAM entered bankruptcy, it only owed about a hundred thousand dollars. Part of the reason for going that complicated and expensive path was the lack of clarity concerning the propriety of the settlement with UNCB and especially the Ferree Trust, for what the endowment of over a million dollars could be used, and how the Academy was to proceed in it re-organization and return to viability.
The settlement with UNCB is a positive step in that direction, and helps clear the way for PAM’s yet to be submitted reorganization plan to avoid creditor opposition.
