Rival Bidders in Talks On Reviving New York City Opera

The monthslong battle over what remains of New York City Opera has taken a new turn.

Two bidders with competing proposals to buy the failed opera company’s name and intellectual property in hopes of reviving it are now in talks to try to resolve their differences.

The opera’s board is also weighing a third option in a light of a bequest that could be worth millions of dollars. Instead of selling off the company’s assets, the board could reorganize the defunct company through the bankruptcy process, enlisting one of the two bidders as a sponsor of the reorganization plan. That course could make it easier to retain the gift as well as control of the opera’s nearly $5 million endowment.

Either way, the dispute between the two bidders will have to be resolved before the case can move forward, S. Jason Teele, a lawyer for the board, told U.S. Bankruptcy Judge Sean Lane on Tuesday.

Earlier this year, an investor group backed by former New York City Opera board member Roy Niederhoffer offered to purchase the company’s name, intellectual property and thrift shop for $1.25 million.

Another entity backed by architect Gene Kaufman put forth a $1.5 million bid, which the board rejected, saying Mr. Niederhoffer’s was the “best offer.” Mr. Kaufman has contested that decision.