THE MOUNT ACHIEVES MILESTONE RESTRUCTURING WITH ITS PRINCIPAL CREDITORS

MAJOR STEP IN FINANCIAL RECOVERY

$750,000 Gift from The Alice M. Kaplan Memorial ReserveMakes Restructuring Possible

The Mount to Broaden its Mission and Audience through Creation of The Edith Wharton Center for the Written Word

 Photo:  Bobbie Greene McCarthy of Save America's Treasures, Secretary of State Hillary Clinton, and Gordon Travers, The Mount's Chairman of the Board at a breakfast honoring Mrs. Clinton.  The Mount's successful restructuring was discussed at the breakfast.

May 20, 2009 --- Lenox, Massachusetts. The Mount, the National Historic Landmark home of noted American author Edith Wharton, announced today that it has reached agreement with its principal creditors on an overall restructuring of its funded debt. The new terms of the agreement significantly reduce The Mount’s debt service and provide for a reasonable and realistic basis to retire the principal balance within a five-year term. The key to the restructuring was a $750,000 grant from The Alice M. Kaplan Memorial Reserve, an entity conceived and administered by her children to honor their mother, Alice M. Kaplan.

As a result of the restructuring, The Mount’s funded debt will be reduced from approximately $8.4 million to $4.7 million. Financial terms of the transaction were not disclosed due to confidentiality obligations among the parties involved.

Commenting on the successful restructuring, The Mount’s Chairman of the Board, Gordon Travers, said, “This restructuring represents a remarkable achievement in extraordinarily difficult times. In the context of the enduring hardships faced by not-for-profits and foundations generally, especially those in the cultural arena, we are grateful to everyone who, despite the current economic environment, recognized the importance of keeping The Mount in the public domain.  Without the extraordinary generosity of the Alice M. Kaplan Memorial Reserve and the $1.4 million raised from the Save The Mount Campaign launched last year, we would not have been able to accomplish this restructuring. We are particularly appreciative of our creditors, who have demonstrated considerable patience and understanding throughout this period, as well as of our dedicated and loyal staff, who have stuck with us through some very harrowing times.”

 Travers added, “In spite of this double dose of great news, The Mount must continue to raise meaningful funds in order to continue operating in the black (as it did over the past year), and to fund a critical expansion of mission. The restructuring and fundraising success that we have achieved over the past year will hopefully demonstrate to potential donors, old and new, that The Mount’s leadership provides responsible financial stewardship for this great asset, and is worthy of their confidence.”

Susan Wissler, Executive Director of The Mount noted, “This very generous grant from the Alice M. Kaplan Reserve enables us to move beyond this next season into 2010, when we plan to host a major international exhibition saluting France’s top interior designers and introduce exciting, new programming.  We are also very grateful to the thousands of donors, large and small, who responded to our emergency Save The Mount Campaign.”

Securing a Vibrant Future for The Mount

The Board of Trustees of The Mount has determined to expand the mission of The Mount beyond serving primarily as an historic house museum and garden. Going forward, The Mount will broaden its mission to include The Edith Wharton Center for the Written Word, featuring year-round programming, including writing programs and workshops for adults and teenagers, panel discussions involving leading writers and public figures and an annual summer writers’ festival. Importantly, The Edith Wharton Center for the Written Word will enhance the Berkshires’ position as a mecca for the creative arts, and provide expanded integration with the local community and institutions.

In addition to its traditional programming, some of the planned highlights of the 2009 season are:

• A literary festival over a long weekend that will include panels of writers, readings and evening receptions 

• A full roster of lectures and readings, including several Pulitzer Prize winners and nominees

• New family programming that will feature illustrators’ workshops for children and young adults

• A return the stage, in the drawing room of Wharton’s historic home, of the adapted stories of Edith Wharton, commencing in August with the delightful comedy Xingu.

• An exhibition written especially for The Mount, Edith Wharton and the First World War, which highlights her literary and charitable war work, presenting a new side of Edith Wharton to the public.

• Wharton on Wednesdays, with noted actors from the Berkshire Theatre Festival reading works by Edith Wharton at 5 pm on The Mount’s Terrace.

• Some Enchanted Evenings, The Mount’s outdoor evening café featuring drinks, hors d’oeuvres and live jazz, beginning on June 26th.

Next month, on June 24th, The Mount will announce the designers participating in the 2010 Salute to French Design at a reception to be hosted by the French Embassy in Manhattan. The list is impressive, including French cultural icon Andrée Putman and many of France’s rising design stars.

More details regarding the plans for The Edith Wharton Center for the Written Word will be forthcoming in the coming months. It is the Board’s hope that the achievement of this restructuring, coupled with the exciting expansion of The Mount’s mission, will serve as a catalyst for increased fundraising and meaningful expansion of the existing Board.

The Mount also particularly wishes to express its sincere gratitude to its long-time senior lender, Berkshire Bank, for its patience and support during this long and difficult process, which resulted in a positive outcome for both parties, as well as to the law firms that graciously donated their time and wise counsel in assisting us in achieving this restructuring: Foley Hoag of Boston and Shearman & Sterling of New York.

The Mount is located in Lenox, Massachusetts. The house and three acres of formal gardens designed by Edith Wharton, the Georgian-style stable and extensive woodlands are open to the public daily May through October. For more information, call 413-551-5111 or visit www.EdithWharton.org.