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January 23, 2015

Shuttered City Opera's Board OKs $1.25-Million Reboot Bid

The board of New York City Opera has approved an investor group's $1.25-million proposal to revive the company, which shut down after declaring bankruptcy in 2013, reports The Wall Street Journal. NYCO Renaissance, led by hedge-fund manager and former City Opera board member Roy Niederhoffer, aims to reboot the company under the leadership of Michael Capasso, who now runs a small Manhattan opera.

The decision was challenged by Gene Kaufman, a City Opera creditor who offered $1.5-million for the shuttered company's name. A lawyer for the organization told a bankruptcy court judge that NYCO Renaissance's bid was more attractive because it presented a "far better proposal" for continuing the mission of the nonprofit opera, which spiraled into debt after raiding its endowment for years to cover operating costs.