Judge denies Carter's Grove settlement

NORFOLK, Va. (AP) - A federal bankruptcy judge has denied a motion to approve a settlement between the Colonial Williamsburg Foundation and Carter's Hall LLC.

At issue is the James River plantation that once was a Colonial Williamsburg attraction, but has fallen into disrepair. The Colonial Williamsburg Foundation sold Carter's Grove in 2007 to Halsey Minor for $15.3 million. But Minor stopped making payments in summer 2010, and the foundation sought foreclosure. Minor's Carter's Grove LLC then filed for bankruptcy protection.

The foundation says it's owed $4.1 million and interest. Among other things, the proposed settlement called for Colonial Williamsburg to loan Carter's Hall up to $500,000 to make repairs.

Judge Stephen C. St. John in Norfolk denied Minor's settlement proposal in an order Tuesday. He has ordered a trustee to administer the estate.