Kitsap Navy News August 12, 2011

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COVERING PUGET SOUND NAVAL NEWS FOR BREMERTON | BANGOR | KEYPORT

NAVY NEWS Kitsap

VOLUME 1, NO. 20 | 12 AUGUST 2011

www.kitsapnavynews.com

Voters will decide tax levy for veterans, homeless The Nov. 8 ballot will include a property tax measure for Kitsap social services By TOM JAMES

tjames@kitsapnavynews.com

Kitsap County’s three county commissioners Monday unanimously called for a special

SEE LEVY | PAGE 8

SOLD OUT

Daryl Casson leans against the now-closed bar at Bremerton’s American Legion Post 68. TOM JAMES/STAFF PHOTO

Bremerton’s American Legion Post 68 sells its regalia to get out of bankruptcy By TOM JAMES

tjames@kitsapnavynews

Bargain hunters, restaurant owners, and more than one Kitsap charity looked for deals, even as other community members took the time to say goodbye in their own way last Thursday, as items from bingo daubers to dishwashers were sold at auction to cover the debts of Bremerton’s bankrupt American Legion Post 68. The auction came as a final step in a Chapter 7 bankruptcy filing begun in April of this year, a controversial action following years of mismanagement, dwindling cash reserves, and revocation of the orga-

nization’s charter by the American Legion Department of Washington, the state arm of the national organization. “It’s like a funeral,” said Johnny McCord, a 27-year member of the post and recent vice commander. “I’m sad to leave the building because this was a landmark for the veterans and the community.” Under a Chapter 7 filing, the assets of an organization are sold at a public auction, in this case by Stokes Auction BoardmanOrwiler Corp. Proceeds from the liquidation are then used to pay off creditors. Many objected to the Chapter 7 filing, including the state arm of the organization and a majority of the post’s members, primarily on the grounds that such ‘fire sale’ type liquidations usually result in assets being sold at extremely low prices. Most of those objecting advocated filing under Chapter 11 of the bankruptcy code instead. Under Chapter 11, a judge reorganizes an organization’s debt and establishes an order in which creditors are to be repaid, allowing the organization to continue in business

even during and after the filing. Organizations that still have some income but simply stopped being able to keep up with payments on their debts often emerge from Chapter 11 after some time, and are able to resume business as usual.

‘Puzzled’ Dale Davis, adjutant of the state branch of the organization, said at the time that he was “puzzled” by the bankruptcy sale choice. The post, which operated weekly bingo games as a well as a tavern on its Spruce Avenue property, showed more than $680,000 in yearly gambling receipts alone. At the time, the Bremerton Police opened an investigation questionable financing at the organization, but placed it on hold soon after. Ultimately, the bankruptcy judge in charge of the case allowed the post’s elected officers, including John Corriea, the post commander, and Paul Young, the post adju-

SEE LEGION | PAGE 9

THIS EDITION Veterans’ job symposium set for Tacoma ........ pg.2 Lost wedding band, love found | Navy Wise Sarah Smiley ........... pg.4 Pres. honors fallen .................. pg. 10 USS Bogue grows into full carrier ........... pg. 13


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Kitsap Navy News August 12, 2011 by Sound Publishing - Issuu