DETROIT — The Detroit Symphony Orchestra announced Thursday that it has reached a resolution with its five-bank lending syndicate.
This resolution is one step in the DSO’s strategic recovery plan that started in 2008. That plan includes: cutting staff workforce and compensation of 10 percent and five percent in 2009, members of IATSE union agreed to cuts and freezes, in 2010 music director Leonard Slatkin agreed to a three-year contract extension through 2013 and a pay cut, and in 2011 members of the DSO agreed to a 3-year concessionary contract of $36.3 million,11.3 percent decrease from the previous 3-year expenditure.
“This was a complex and carefully considered process,” said Arthur A. Weiss,t reasurer and executive committee member of the DSO. “The DSO is grateful for the spirit in which our lenders worked with us to resolve our banking differences. This agreement removes a substantial liability from our balance sheet and a significant source of financial strain for the DSO. Most importantly, it represents a new beginning for our 125-year-old community gem.”
The new agreement achieved helpful work rule changes that allowed DSO to address certain aspects of the business model, including community engagement, educational services, and digital media.
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