Kent Restaurant Headed For Bankruptcy Court

KENT

William and Linda McNallie said Meeker's Landing restaurant was debt-free when they made a deal to sell it last December to two men who have since come under investigation for bank fraud.

Now facing large debts that the McNallies said occurred after the men began managing the restaurant, W.E.M. Inc., doing business as Meeker's Landing, has filed to reorganize and protect itself from creditors under Chapter 11 bankruptcy laws in U.S. bankruptcy court.

The reorganization came three days after complaints were filed in U.S. District Court against the two men who were buying the restaurant, accusing them of one count each of bank fraud and three counts of making false statements to two banks.

According to Donald Hacker, attorney for W.E.M., a schedule of the corporation's assets and liabilities, along with a statement of financial affairs, will be filed today in bankruptcy court.

Linda McNallie, who has owned the restaurant since 1977, said the debts may total more than $350,000. The bankruptcy filing stopped two suits by creditors against the restaurant.

She said Roger Stallings and Richard Wun Ping Sang, the men who were named in the federal court complaint, made a large down payment and ``showed a financial statement of $2 million to back up their credibility.''

However, McNallie said employees told her in July their paychecks were bouncing.

Meanwhile, Meeker's Landing is on the market again, although it will be up to the court whether it can be sold. It is once again being managed and operated by the McNallies, who returned Aug. 6.

Linda McNallie, whose husband is president of W.E.M. Inc. said the employees are being paid now. But she said the state Liquor Control Board has seized the restaurant's books for auditing.