Orchestra London faces a six-figure budget shortfall that may force it into bankruptcy and imperil Joe Swan’s future as executive director, The Free Presshas learned.

The publicly funded group is lurching into the third major financial crisis in recent history after its biggest-ever donation recently fell apart, leaving it with a massive deficit for the 2013-14 season.

Sources have told The Free Press the orchestra has cancelled all its concerts beyond this month and may cease operations within days.

Though Swan indicated that may be premature — “The orchestra has been here for 75 years, it’s going to be here for 75 more years” — he and Joe O’Neill, who heads the board of directors, addressed the financial woes head-on in an exclusive sitdown with The Free Press Tuesday.

“Given just the prevalent financial conditions, it’s been that way for years, you have no choice but to have a concern” that the orchestra could fold, O’Neill said.

Asked if he could rule out bankruptcy, he simply said: “No.”

O’Neill intends to remain on the orchestra board. Asked if he’ll remain as executive director, Swan said: “We’ll see,” adding he’s doing a report on how to best alter the business model that’s clearly not working.

Here, according to Swan and O’Neill, is what drove the cash-strapped organization into this crisis.

Two years ago, Swan secured the biggest single gift in orchestra history — $1 million, to be parcelled out over three years. The first portion, $350,000, was given in June 2013.

But the second portion, also for $350,000, didn’t arrive this summer. Two weeks ago, the unnamed donor told orchestra brass they’ve decided to spend it instead on efforts to build a new concert facility to replace Centennial Hall.

And that, Swan and O’Neill argue, is the biggest issue: without a new facility befitting a professional symphony, Orchestra London will struggle to survive.

But unionized musicians and stagehands, angry at the state of affairs, point the finger at Swan and the orchestra administration.The Free Press recently obtained a letter from both unions that urged Swan’s ouster.

That, Swan argues, is unfair.

“If they feel the problem is because of an individual, they missed the entire point,” said Swan, who recently returned from a two-month hiatus during which he ran for London mayor.

“One person does not make an organization or a community.”

Several unionized employees reiterated their frustration with Swan and O’Neill’s leadership in conversations with The Free Press Tuesday.

But amid the uncertainty, musicians were still rehearsing and, along with their stagehand colleagues, are committed to performing a benefit concert Wednesday night for a social-service agency.

“We’re concerned about the audience,” said one employee. “We care about them.”

Ted Peacock, an executive with the London Musicians Association that represents 56 orchestra musicians, says Londoners should recognize they’re still rehearsing despite the turmoil.

“It shows their commitment to the orchestra and London,” Peacock said.

There are also concerns among employees that they may not be paid. Asked about payroll obligations, Swan said: “I think we’ll be OK for December.”

City hall gives the orchestra $500,000 annually. Mayor Matt Brown expects city staff to detail the situation to politicians at a meeting next week.

On Wednesday morning, it was uncertain if Friday and Saturday's Red Hot Weekends concerts at Centennial Hall -- with guest Stephen Kabakos, an Elvis tribute artist from Milton -- would go ahead.

The orchestra administration was talking with musicians, stagehands and others and a decision would be announced later Wednesday, an orchestra representative said.

- with files from James Reaney

patrick.maloney@sunmedia.ca

Twitter.com/patatLFPress?