National Museum of American Jewish History Successfully Reorganizes Through Chapter 11 Plan
Dilworth Paxson LLP represented the National Museum of American Jewish History in its successful Chapter 11 reorganization proceedings in the Eastern District of Pennsylvania Bankruptcy Court. The Museum was unable to restructure its secured bond debt of approximately $30 million outside of Chapter 11 and filed a Chapter 11 petition on March 1, 2020. During the Chapter 11 case, the value of the Museum’s building on Independence Mall was contested by the parties. Ultimately, the parties reached agreement on a plan of reorganization by which the Museum building was sold and leased back by the Debtor. The Effective Date of the confirmed plan occurred on September 17, 2021. Shortly after emerging from Chapter 11, the Museum exercised an option to re-purchase the Museum building through a generous gift made by Stuart Weitzman. The Museum, which has been renamed the Weitzman National Museum of American Jewish History, has vastly improved its balance sheet and is now in a strong position to continue to fulfill its mission.