On October 3, 2013, New York City Opera filed for bankruptcy (case number 13-13240) in the Southern District of New York. The opera filed a Chapter 11 case which will allow them to restructure the organization, or will allow them to sell off assets and liquidate. (Business Bankruptcy).
Individuals have speculated that the opera will be reorganized under different management. The operas problems are the same type of problems that individuals face when they turn to bankruptcy for help. The opera's revenues were not great enough to support its expenses. The opera's largest creditor (approximately $1.6 million) is the New York City Ballet. Other creditors include landlord, employees (severance pay), pensions, and health fund.
Time will tell what will happen to the opera which is such an iconic part of New York's history.