Following the announcement of the cancellation of the 2018 Sacramento Music Festival, the decision by the Board of Directors of the Sacramento Traditional Jazz Society on December 30 to file for Chapter 7 bankruptcy officially brings closure to the long-running Society and its festival.
At that same meeting, a positive note was struck when the Board authorized its attorney to file papers to create a new corporation that could lead to the establishment of a new Society that apparently would focus essentially on local events. (STJS officials did not respond to a request for clarification.) A Town Hall meeting is scheduled for February 11 to ascertain interest in the formation of a new jazz society.
STJS members received the following email notification on January 9:
“Late last year your Board of Directors announced the canceling of the 2018 Sacramento Music Festival after 44 years. On December 30, 2017, your Board voted to file for Chapter 7 bankruptcy. This was all done with a heavy heart. We have lost a cherished Festival and a Society that has done so much for Traditional Jazz over the last 50 years.
“With the loss of our beloved Society comes a new Society. At the December 30th meeting, the Board also authorized our Attorney to file papers to create a Corporation and a new Society. On the second Sunday on the 11th of February, we would like to hold a town hall meeting between 10:30 am and noon to hear from you so we can move forward forming the new Society. Now you have the opportunity to have your voice heard as we create new bylaws and form a new Society. The new Society will continue to produce the Second Sunday and will need everyone’s input.”
When a troubled business is unable to pay its creditors, it may file for bankruptcy in a Federal Court under Chapter 7, which is defined as “a bankruptcy proceeding in which a company or organization stops all operations and goes completely out of business. A trustee is appointed to liquidate (sell) the company’s assets, the proceeds are used to pay off debts, and then the remaining debt is discharged.”