The International Storytelling Center has seen the effects of the difficult economy and filed for Chapter 11 Chapter 11 bankruptcy protection on December 31^st.  Chapter 11 Bankruptcy allows a business to restructure its financial affairs and continue business operations.

If you’ve ever been to the Story Telling Festival in Jonesborough you’d wonder how they could possibly be in financial difficulties.  The experience is pretty special and there seems to be thousands of people in attendance.

The Johnson City Press reported that the attendance at the festival was down 16% since 2007.  Again, they are seeing the effects of a reduction in discretionary spending brought about by the current recession.

In a Chapter 11 bankruptcy the business continues to operate.  At some point a repayment plan, called a Plan of Reorganization, is proposed to pay the creditors of the business.  Often the payments are stretch out over additional years.  Many times creditors without a lien (unsecured creditors) get paid less than 100% of the debt that’s due.

President Jimmy Neil Smith has indicated that the programming and the services offered by the Center would not be altered.

The current economy is taking its toll on businesses that were successful for years and on individuals that had the same successes.  The tightening of credit coupled with a reduction of discretionary spending is obviously having its impact.