It seems possible, according to this article from the Suffolk News-Herald (emphasis mine):
City Councilman Charles Parr requested that a letter from Gov. Timothy Kaine be read into the record. The letter expresses the governor’s concern that a SPSA default could potentially affect the commonwealth’s bond rating, in addition to that of the member communities. In addition, Kaine indicated he might have to reconsider his support for a bill currently in the legislature that would raise the VRA’s debt ceiling, in light of the SPSA debacle.
As I pointed out earlier this week, SPSA’s chief financial officer quit and the Pilot editorial board is calling for its sale. The article says that SPSA will run out of money by the end of June if tipping fees aren’t raised.
SPSA is scheduled to go by the wayside in 2018. I’m beginning to think we need to put them out of their – and our – misery much sooner.
UPDATE: Got a copy of the letter from the Governor (pdf). An interesting read.
VIVIAN J. PAIGE | All Politics is Local 
So, is SPSA a private company? Can VRA just put it in receivership and sell it off?
Is this going to affect waste disposal in Hampton Roads?
SPSA is not a private company. I guess you would call it a quasi-governmental unit, very much like the regional transportation authorities would have been.
Can the VRA make that move? I’m not sure. Seems like it would be possible although like any other lending institution, I doubt if they would want to do that.
As for affecting waste disposal – there are companies out there offering to purchase SPSA’s assets so I suspect not.
SPSA needs to be investigated by a Grand Jury with indictments served on each of the members of the Board of Directors for the corrupt manner in which this government agency has been mismanaged.
SPSA operates much like the HPRDC. Appointee’s from each of the member cities make decisions that ultimately affect the taxpayers pocketbook.
Chesapeake had the right idea, but didn’t follow through.
The reason for the Grand Jury can be found in the recent State Auditors report on SPSA. It gives numerous reasons why SPSA Board members should be behind bars. Read it for yourself:
Click to access SPSA_2008.pdf
Then the issue of “buying land” whereby SPSA bought land in Suffolk, that the city valued at $12,000 but SPSA paid several million for the land. Was the land owned by a SPSA board member or a relative of a SPSA board member or a business associate of a SPSA board memeber? The “travel” expenses should be investigated as well. SPSA took a now infamous trip to “PARIS” in which SPSA board members used tax dollars to treat themselves to expensive bottles of wine and “escorts” and only the finest hotel accomadations!
Now they sit, with over $250-Million in debt, with no way out, except for the Governor to step in and take money from the member cities to pay off the red ink.
SPSA BOARD MEMBERS NEED TO GO TO JAIL!
Read the State Auditors report and share you thoughts on this corruptly mismanaged “REGIONAL” agency. This is another example of why ‘regional’ agencies are not the solution to any of our problems here in Hampton Roads.