Craighead County Fair Association Bankruptcy Plan Moves Ahead

A person has been selected to serve as the distribution agent to liquidate assets to cover nearly $9.4 million in debts owed by the Craighead County Fair Association after a fair official said cost overruns forced the longtime group to file for federal bankruptcy protection.

U.S. Bankruptcy Judge Phyllis M. Jones approved the bankruptcy plan of liquidation for the Craighead County Fair Association during a July 9 hearing in Jonesboro.

A formal written plan is expected by the end of the week, Judy Simmons Henry, an attorney for Focus Bank said Wednesday.

The fair association, which does business as the Northeast Arkansas District Fair, filed for Chapter 11 bankruptcy last October, citing millions owed to nearly two dozen creditors.

Most of the creditors included construction companies, which are owed around $3.2 million.

However, the largest debt included a $6.2 million mortgage by Focus Bank on nearly 80 acres of land where the new fairgrounds on U.S. 49 were built as well as 15 acres of land where the old fairgrounds are located, a 61-page report filed with the bankruptcy court noted.

Some of the other larger creditors include Bailey Contractors of Bono, who are owed $481,693.63; Adams and Cooper Plumbing of Jonesboro, who are owed $330,913.07; and Barker Brothers Asphalt of Jonesboro, who are owed $304,343.10, according to the report.

PROPERTY
The report showed that the 80-acre plot of land on U.S. 49 is worth about $20.2 million while the 15-acre site near Highland Drive and Red Wolf Blvd. is worth $4.9 million.

The fair association also has nearly $350,000 in several bank accounts, the report said.

Richard L. Ramsay of Little Rock was selected to be the distribution agent for the liquidation. Henry said Ramsay will work to gather information on the assets and start the process to sell the land as well as any personal property owned by the fair.

Ramsey will first attempt to sell the properties privately. If no one expresses an interest, the properties can be sold at public auction.

Ramsay will serve as the sole officer and board for the fair during the process, Henry said.

As for the bankruptcy process, Henry said the situation is rare.

She said it was unusual to see a Chapter 11 filing by a non-profit group as well as having a creditor work to file a Chapter 11 reorganization plan.

FAIR
Michael Cureton, who serves as president of the fair board, said the bankruptcy filing was difficult. He said the cost overruns for the new fairgrounds, completed in 2012, pushed the issue.

Cureton, who became president last fall, said the added costs at the new fairgrounds as well as costs at the old complex forced fair officials to drop plans to pay for sewers and a parking lot among other things.

The Craighead County Fair Association has been around since 1955 and the NEA District Fair has been around even longer.

Cureton said the 2015 fair is scheduled to take place Sept. 21-26 in Jonesboro, as officials work to decide the future of the fair.

He said fair officials are hopeful that at least part of the land could be sold, with the fair becoming a tenant of the complex instead of owning it.