(Reuters) - Philadelphia’s Please Touch Museum filed for Chapter 11 bankruptcy on Friday to carry out an agreement with its bondholders that the children’s museum said would put it on stable financial ground.
Under the deal, the museum will remain open and has committed to raising $10 million by March.
The settlement ends two years of negotiations to restructure the museum’s $60 million in bond debt. Bondholders will receive $11 million, which the museum said in a statement was more than they would have gotten if they had challenged the bankruptcy.
The museum was founded in 1976 and attracts 500,000 visitors annually. It moved to Memorial Hall in Fairmount Park in 2008 from a smaller downtown location.
The museum’s bonds have traded recently between 12 and 14 cents on the dollar in a handful of small deals.
Reporting by Tom Hals in Wilmington, Delaware and Hilary Russ in New York; Editing by Alan Crosby