Copia Appears Doomed
A month ago I wrote about trouble for Napa Valley's Copia: The American Center for Wine, Food and the Arts. Since then it's gotten a lot worse. The Sacramento Bee reports that a federal bankruptcy court judge has blocked attempts by the center to a $2 million emergency loan so that it can stay open while it tries to reorganize $80 million in debts. The decision means that Copia which closed at the start of December will stay closed and programs will probably be canceled. In an email to the Bee, , chief executive Garry McGuire said that "the organization will wind down and be dissolved eventually." The non-profit has filed for Chapter 11 bankruptcy protection from creditors.
Copia's tax-exempt bonds were insured in case the non-profit ever went bankrupt and the bond insurer, ACA Financial Guaranty Corp. of New York is interested in beginning foreclosure proceedings. They have accused Copia insiders of trying to enrich themselves at the expense of bondholders with a bankruptcy filing and proposed $28 million building sale but that deal is unlikely to go through now.