A lawyer for the State Fair of Virginia told a bankruptcy judge Tuesday that he expects to present a proposal by the middle of next week that will allow the fair to keep The Meadow Event Park in Caroline County and continue operating.
SFVA Inc., the nonprofit organization that puts on the annual fair, has until March 7 to come up with a 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.
U.S. Bankruptcy Judge Douglas O. Tice Jr. approved the deadline last week.
Once the proposal is submitted, the fate of the state fair will be in the hands of the lenders who can either accept the deal or take over the park at 5 p.m. March 7.
Jonathan L. Hauser, a Troutman Sanders attorney representing SFVA Inc., said his client's goal was to give the lender group enough time to review the proposal..
"If we don't come up with an agreement, we'll close the doors, turn off the lights and hand over the keys," Hauser told the judge.
The nonprofit organization filed for bankruptcy in December to temporarily stop the lender group from taking over the fair's assets, including The Meadow Event Park.
The 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.
Last week's order allowed the lender group, which is owed about $75.6 million, to take over two accounts worth about $20 million.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement