U.S. Bankruptcy Judge Douglas O. Tice Jr. has signed an order giving the State Fair of Virginia about a month to find financing to continue operating or come up with a plan to keep the Meadow Event Park in Caroline County.
SFVA Inc., which filed for Chapter 11 bankruptcy protection in December, has until March 7 to come up with the financing plan to operate for the next year or a plan to keep all of its assets that a lender group otherwise would take over. SFVA and its lender group had agreed to the deadline.
Tice signed the order Tuesday, but it did not appear on the court's electronic filing system until Wednesday.
SFVA filed for bankruptcy to temporarily stop its lender group from taking over the fair's assets, including The Meadow Event Park.
That's because the nonprofit organization that operates the annual state fair was no longer meeting the terms of its loan agreements and could not make its Dec. 1 interest payment without endangering near-term operations, court records show.
The Meadow Event Park had been used partly as collateral on loans SFVA took out to help buy and build the complex in Caroline.
The judge's order also calls for the lender group, which is owed about $75.6 million, to take over two financial accounts with a total of about $20 million. That money would go toward paying off the debt.
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