The Pennsylvania Academy of Music (PAM) has petitioned Jean K. Fitzsimon, Bankrupty Judge, to dispose of its remaining assets. According to the document:
“Debtor has entered into Asset Purchase Agreement/Letter of Intent ( “LOI” ) to sell or transfer the assets listed at private sale to Lincoln Park Performing Arts Center ( “LPPAC” ) , One Lincoln Park, Midland Pennsylvania 15050, for the sum of $300,000.00.
“Included in the assets listed in the LOI for transfer to LPPAC is Debtor’s Endowment Fund with a present balance in excess of $870,000.00.
“LPPAC has agreed to devote to the assets purchased and the Endowment Fund to operating an expanded music education as well as other performing arts programs within the geographic area of Lancaster County and the surrounding area based upon the needs for such programs as LPPAC in its sole discretion shall determined.
“Debtor believes and therefore avers that LPPAC, a Pennsylvania Not for Profit corporation as an IRS 501( c)(3) Charitable Organization, which is ready willing and able to carry on PAM’s mission and goals into the future using the Endowment funds for the same or similar purposes for which those funds were originally contributed.”
Filed along with the petition is a tentative Agreement between PAM and LPPAC.
A provision in the agreement allows until July 29, 2011 for others to offer $325,000 or more for the remaining assets, apart from the endowment fund. If so, then LPPAC will be entitled to $15,000 as a “break up fee”, presumably to cover its costs.
The petition was filed on behalf of PAM by its counsel Jacques H. Geisenberger, Jr.
