By JEN MCCAFFERY THE ROANOKE TIMES

Archives Reprint

LYNCHBURG - A Roanoke County retiree who donated $1 million to the National D-Day Memorial Foundation will continue to receive his annuity payments for at least the next two months, attorneys said in a hearing in federal bankruptcy court here Thursday.

Melvin Proffit, a retired Lowe's manager who donated $1 million in company stock that he had amassed throughout his career, will still get the $6,506 he was receiving each month for December and January. That money was the "overwhelming portion of Mr. Proffit's income and support," according to court documents. Proffit was supposed to receive $72,000 a year from the foundation for the rest of his life, by virtue of the agreement he made with it.

The attorneys also agreed that the foundation's 24 employees should receive back pay they were due, about $14,000. U.S. Bankruptcy Judge William Anderson ordered the payments to both Proffit and the employees.

Proffit, 83, was placed at the head of the list of creditors the foundation owes money to, said foundation president William McIntosh.

"He was put in an unfortunate situation by the agreement he signed with the foundation," McIntosh said.

Richard Maxwell, who is representing the foundation, said at the hearing that "it is the intention of the foundation to live up to its obligations." The foundation filed for Chapter 11 bankruptcy protection last week and owes $3.8 million to its creditors.

At the same hearing, attorneys for the foundation and for the creditors presented a united front and said they have agreed to try to work out a plan outside the courtroom by Dec. 31 to address the foundation's debts. The attorneys said they wanted to work together to find a solution and encourage people's faith - and donations - in the cash-strapped memorial.

Maxwell argued that the attorneys on the case should not use their resources to fight each other.

"There's no one who doesn't want this project to succeed," said McIntosh, referring to the foundation's creditors. But, he added, they also have their own business interests to look out for. He hailed the creditors' willingness to work with the foundation to work out a plan as "a great step forward."

Anderson granted the motion for the attorneys to mediate the case.

"I am very, very sorry, as I am sure all of you are, that we are here today," Anderson said during the hearing.

Financial problems at the $25 million memorial in Bedford were made public last year a few months after the resignation of the foundation's first president, Richard Burrow. McIntosh, who succeeded Burrow, said that the foundation was $5 million in debt when he took over.

Burrow, 55, was indicted on four federal fraud charges in connection with how he raised money to fund construction of the memorial, which honors World War II veterans of the Normandy invasion. He has pleaded not guilty to the charges.

Attorneys for the largest creditors in the case, Coleman-Adams Construction of Forest and Roanoke architect Byron Dickson, suggested that the parties sit down to mediate the dispute, said Howard Beck, who is representing Coleman-Adams.

In August, Coleman-Adams was granted a $1.67 million judgment against the foundation for the $2.1 million the company says it is owed for building the monument. Dickson filed suit against the foundation in April, seeking $867,000 for his work designing the monument.

The foundation owes about 30 creditors in total, McIntosh said. Those creditors will get a chance to file their arguments in court about whether they object to the mediation process worked out by the foundation and the larger creditors. A hearing on that issue was set for Dec. 19.

Assistant U.S. Trustee John Byrnes sounded a cautionary note at the hearing, that though the attorneys have agreed to try to work things out without litigation for the time being, it would not solve all the foundation's problems.

"Chapter 11 does not create money," he said.

Still, Maxwell is hopeful that not wrangling in court over the bankruptcy will free up foundation resources.

"The most important thing is that this will free people from the foundation to go out and raise money," he said.

Jen McCaffery can be reached at 981-3336 or jen.mccaffery@roanoke.com

Let any elected or appointed official know what you think and how you feel by CLICKING HERE.