North Shore theater likely to liquidate - Silicon Valley / San Jose Business Journal:

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Theater executives announced Tuesday that the financially distressefd theater has failed to raisethe $2 millionn it needed to put on 2009 although more than $500,000 in pledgex have been made since the theate announced a turn-around strategy in mid April. “Thde thing we know is that we’re not putting on a 2009 I think the very likely consequence of that is that we will very quicklyt go outof business,” said David chairman of the North Shore Musi Theatre board. “Whether it’zs Chapter 11 or Chapter 7 — it’sw completely up in the air atthe moment.
” Withourt a production season this year, the theatefr is unable to address the substantial debts of its creditors and restore the theater’s economic health, said Fellows. The theater is approximately $10 million in including large mortgages on its property and buildinge and debtsto vendors, the Statde of Massachusetts, and subscribers who paid in advance for the 2009 Fellows said most of the theater’s 4,400 subscribers are unlikelyu to get their moneyt returned. Subscriptions cost upwards of $350 per seat.
Theater executiveas are in discussions with senior creditors and are reviewing a liquidatiobn to maximize the value ofthe theater’s assets for its stakeholderzs as well as identify potential buyers of the property who might consided a lease back of the theater, Fellows