Yavapai Group filed for Bankruptcy

Prescott AZ - July 14, 2011 - The Yavapai County Farm & Agriculture Association (YCFAA) announced that it has filed for protection under Chapter 7 of the U.S. Bankruptcy Code.

The filing was made before the United States Bankruptcy Court for the District of Arizona.

The YCFAA has been operating the fairgrounds since taking over the property’s assets from the Yavapai County Fair Association in 2009. It has managed the annual horse-racing meet at Yavapai Downs, the Yavapai County Fair and the Coors Event Center, and it leases a portion of fairgrounds’ property to the privately run Prescott Valley (motorsports) Raceway.

In making the announcement, the YCFAA’s Board of Directors cited a combination of overwhelming financial pressures, including $14.5 million in loans and interest due to the United States Department of Agriculture; hundreds of thousands of dollars of debt owed to Yavapai Downs’ racing-industry partners, and the county’s recent re-assessment that increased the fairgrounds’ property taxes approximately 10-fold.

The YCFAA had received 501(c)5 status from the Internal Revenue Service in October, 2009.

The statement from the YCFAA Board of Directors follows:

"While it is with deep regret that we take this step today, it is with great energy and optimism for tomorrow that we approach the challenge of revitalizing this property.  Toward that end, we have entered into detailed discussions with many interested parties, and, in the weeks to come, we will begin discussions with many of the nation’s top business people. They have made known their strong interest in, and their desire to pursue, the opportunities this facility will provide in the future."

The YCFAA’s Board of Directors named attorney Randy Nussbaum its representative through the process.

Mr. Nussbaum is a “Certified Specialist” in business bankruptcy (American Board of Certification) and The Arizona Board of Legal Specialization has certified him in bankruptcy law as well.

 The horse-race meeting, which was scheduled to begin May 28, running through Sept. 6, was canceled. The status of this year’s county fair remains uncertain.