In November 2011, the State Fair of Virginia, Inc (SFVA) faced a difficult financial situation. While SFVA was officially founded in 1906, has been working with the fair in 1854. SFVA was private, not-for-profit organization that operates independent of the true state of the government, and did not receive operating support from the state or local governments. In 2003, the organization has borrowed $ 83 million from $ 47 million in an investment portfolio with a view to developing a new exhibition center, which opened in 2009. The new site was attractive because it enabled Meadow Farm, a horse farm known as the birthplace of Secretariat, winner of the 1973 Triple Crown. Unprecedented collapse of financial markets in the United States in 2008, coupled with the poor economy and terrible weather in the first two years of the fair, has led to a situation where at the end of 2011, the organization does not bring enough income and donations to cover the loan payments. Lenders require immediate attention. The Board of Directors SFVA realized that they had no choice but to consider strategic options, including the use of Chapter 11 bankruptcy, which will give them time to try to restructure its debts, or off at once. "Hide
on W. Glenn Rowe, Karin Schnarr Source: Richard Ivey School of Business Foundation 20 pages. Publication date: April 25, 2012. Prod. #: W12920-PDF-ENG
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