Liberace Foundation to declare bankruptcy
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Blaming cash-flow problems caused by a decade-old loan, the Liberace Foundation says it will file for bankruptcy. If bankruptcy sounds bleak, the tone of the official announcement, sent to us by foundation chairman Brian "Paco" Alvarez, couches this development amid an upbeat view of the future, based in part of a revival of interest Liberace, thanks to a film about him starring Michael Douglas and Matt Damon. Here's a chunk of Alvarez's announcement:
“On October 23, 2012, the Board of Directors of the Liberace Foundation for the Creative and Performing Arts decided to file Chapter 11 bankruptcy. This action was done to protect the assets of the Foundation. For the past several years, the Foundation has tried to work through cash flow issues caused in large part by a $1.9 million loan which was entered into 12 years ago. That loan had an unusually high interest rate as well as other requirements that precluded the board from renegotiating the terms.
"This action comes at a time when the board and donors are well on their way to achieving some of the greatest successes in the history of the Foundation. Our business fundamentals are strong and are getting stronger. The allure of the Liberace name is once again in demand and about to take a major leap forward playing to Liberace's fans and drawing new audiences. Liberace will soon reemerge as an international brand with a major feature film, now in post-production and slated for opening next summer. A major musical in New York City is slated for an opening in 2014. In 2013, the Foundation will reestablish its scholarship program for students at UNLV, CSN and the Nevada School for the Arts. And most exciting is that the Foundation is in negotiations for a new location in Las Vegas to exhibit Liberace's priceless collection of artifacts.
"As the Chairman of the Foundation, I want to assure members of the community as well as donors that we will work through these challenges and emerge stronger than ever. We are excited to continue our celebration of the cultural arts in Southern Nevada through Showmanship and Scholarship."