Nashville Symphony Debt Debate

The Nashville Symphony’s decision to not renew its letter of credit with lenders that backed the $102 million in bonds sold to build the Schermerhorn Symphony Center in 2006 reportedly hasn’t put the facility in jeopardy of being sold so far.

Symphony officials have been negotiating with banks to work out a new deal. However the deadline to renew the letter of credit is April 30, so the organization is in danger of defaulting on $88 million still owed for building the facility.

In a statement on the organization’s website, Symphony President Alan Valentine said mid-March the decision to not renew the letter of credit wasn’t made lightly.

“While it is too soon to know exactly what will happen next, we believe this decisive action will create a sense of urgency and focus on discussions with our lenders.” Valentine said. “Our objective is to achieve a comprehensive financial restructuring that significantly reduces or even eliminates the Symphony’s long-term debt, while we continue to take action to manage our costs prudently.

“By doing so, we will position this great institution to operate on a sustainable basis going forward.”