Members of Katten’s Insolvency and Restructuring group in Dallas confirmed a Plan of Reorganization for the Casey Joyce All America Post 4380 of the Veterans of Foreign Wars (VFW) in Plano, Texas. Originally chartered in 1982, the post provided support and aid to local veterans, carrying forward VFW traditions in serving the Plano area.
Like many other VFW anchors, Post 4380 operated a canteen, a type of bar and grill for veterans and their families to meet for support and socializing. Operations continued through 2017. However, significant operating debts began to accrue, including wages, rent, utilities and taxes. Deep in debt, the post shut the canteen down in 2017. The post surrendered the building where the canteen was housed to the landlord, but continued to carry out its regular activities, raising funds through donations and membership fees and using those funds for charitable activities in the community. Attempting to resolve debt obligations on its own, the post hit a roadblock because it was prohibited from using restricted donations to pay debts. In addition to over tens of thousands of dollars in unpaid operating debts, the post also had unpaid wage taxes owed to the IRS. With interest and penalties, that debt quickly ballooned to well over six figures.
Katten began representing the post and, in 2021, filed for Chapter 11 bankruptcy protection. After almost nine months in Chapter 11, the Plan was confirmed, settling over a quarter of a million dollars in claims for less than $5,000. Almost unheard of, a six-figure IRS claim was settled for less than $2,000.
Thanks to the resolution of its debts, Post 4380 will now be able to resume its fundraising activities and continue its support of area veterans and their families.
In addition to associate Yelena Archiyan, who took the lead on this matter, the Katten team included partners John Mitchell and Michaela Crocker, paralegal Janice Brooks-Patton and legal executive assistant Connie Harris.