The SFVA Inc., the not-for-profit organization that generates the State Fair of Virginia has recently converted its Chapter 11 bankruptcy to a Chapter 7 bankruptcy filing in Richmond District Court.
As a possible resolution to emerge from the Chapter 11 process, the NPO proposed purchasing the 360-acre Meadow Event Park from the lender group of secured creditors. However, the lender group rejected the offer, refusing requests to produce a counter offer. Due to the secured creditors’ decision not to accept the offer, SFVA Inc. was forced into the resulting bankruptcy, reported Sandy Allen on www.examiner.com.
Thus, no further events produced by SFVA Inc., including the Strawberry Hill Races, the State Fair of Virginia and the Meadow Highland Games & Celtic Festival, will take place.
G. William Beale, SFVA Board of Directors Chairman and CEO of the Union First Market Bankstated in a press release, “…We worked diligently with multiple parties to present the secured creditors with a reasonable offer to purchase The Meadow, and thus allow the 156-year-old tradition of the State Fair of Virginia to continue. Unfortunately, that offer was rejected. Apparently, the secured creditors have other unknown plans for the property.”
The State Fair of Virginia Scholarship Program has awarded 2,439 scholarships and has dedicated over $1.8 million to youth education over the past 20+ years. The funds will, under the administration of a bankruptcy court-appointed trustee, be sent to Virginia Tech’s foundation for administration and distribution. The scholarship funds were managed separately from the investment portfolio used as collateral to secure the loan to develop The Meadow Event Park.
SFVA, Inc. has reportedly asked that their creditors release the rights to the State Fair of Virginia, the Meadow Highland Games & Celtic Festival and the Strawberry Hill Races. The ultimate fate for the events as well as the property will be determined by the Chapter 7 process and will be decided upon by the court-appointed trustee.
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