Deal Reached In Virginia State Fair Bankruptcy Case Clears Way For Sale

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credit: Mark Kolbe/Getty Images

credit: Mark Kolbe/Getty Images

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RICHMOND, Va. (CBSDC/AP) — A deal reached in the State Fair of Virginia bankruptcy case would clear the way for a buyer to purchase the entire fair in an attempt to put on the event in September.

Documents filed Monday in U.S. Bankruptcy Court indicate that the agreement between the lender group and the bankruptcy trustee also would free up funds in several accounts — including more than $356,000 in student scholarships that SFVA previously promised before it liquidated.

A federal judge must approve the agreement. A hearing is set for Wednesday.

A foreclosure auction is scheduled for Tuesday for the 360-acre Meadow Event Park in Caroline County as well as the fair’s intellectual property. SFVA filed for bankruptcy after defaulting on nearly $80 million in loans.

News of the deal comes just two months after the fair’s chairman said he felt “pretty certain” there would not be a fair this year.

(TM and Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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