RICHMOND, VA (WWBT) – What goes up - eventually comes down. But can the State Fair bounce back? Or will it have to foreclose on its 360 acre Caroline County property.
Circuit City, Land America, and S&K could not recover.
"This is the time period where it's either make or break. Either entities have the ability to pay off the debt or they don't have the ability to pay off the debt," said William Bellamy.
Portfolio Manager William Bellamy has no inside knowledge on the State Fair bankruptcy. But he knows all about synthetic rate swaps...
That's the deal the state fair used. They had a variable interest rate and swapped it out for a fix rate. The problem is interest rates continued to drop- leaving the State Fair stuck here with higher payments.
"So obviously the better plan would have been too stick with the variable rate but hind sights 20/20," Bellamy said.
And now one of the agency's top creditors- Arbor One is not so confident the fair can survive.
In court documents Arbor One argues- given the massive size of the fair's debt- it doesn't see how reorganization is possible. Arbor One wants to make sure it's covered.
The State Fair's operator said shortly after filing for bankruptcy quote, "We will take every step necessary to protect and continue this wonderful tradition."
A hearing on the State Fair's bankruptcy petition is scheduled for next Tuesday.