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Johannesburg - The Johannesburg Philharmonic Orchestra is in financial distress and has started business rescue proceedings, it confirmed on Thursday.
Business rescue allows companies in financial distress to be rehabilitated under supervision and subject to a court order.
"The board of the JPO took a formal resolution to start business rescue proceedings," managing director Shadrack Bokaba said in a statement.
"The board and I are confident that this financial situation will turn around within the next three to six months."
It appeared unlikely that the orchestra would be able to pay its debts for the next six months, prompting the board resolution.
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However, the JPO had a "reasonable" prospect of rescue.
Sikkie Kajee had been nominated as the JPO's business rescue practitioner, although the Companies and Intellectual Property Commission had to approve the appointment.
The business rescue practitioner must supervise the company during its rescue period.
The department of arts and culture was expected to provide funding, based on its undertakings.
The JPO had applied to the National Lottery for a 2012 funding allocation.
"Based on the historical commitment by the fund, it is anticipated that these funds will be approved and allocated during the course of the year," it said.
Fund-raising activities would increase and symphony concerts would continue this week and next week.
Business rescue allows companies in financial distress to be rehabilitated under supervision and subject to a court order.
"The board of the JPO took a formal resolution to start business rescue proceedings," managing director Shadrack Bokaba said in a statement.
"The board and I are confident that this financial situation will turn around within the next three to six months."
It appeared unlikely that the orchestra would be able to pay its debts for the next six months, prompting the board resolution.
National Lottery
However, the JPO had a "reasonable" prospect of rescue.
Sikkie Kajee had been nominated as the JPO's business rescue practitioner, although the Companies and Intellectual Property Commission had to approve the appointment.
The business rescue practitioner must supervise the company during its rescue period.
The department of arts and culture was expected to provide funding, based on its undertakings.
The JPO had applied to the National Lottery for a 2012 funding allocation.
"Based on the historical commitment by the fund, it is anticipated that these funds will be approved and allocated during the course of the year," it said.
Fund-raising activities would increase and symphony concerts would continue this week and next week.
