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Tuesday, November 19, 1996     Page: 3A

WILKES-BARRE — The Wilkes-Barre law firm of Doran & Nowalis, former
counsel to the receivers and trustees in the Blue Coal Corp. and Glen Nan Inc.
bankruptcy cases, is seeking bonus compensation of $250,000, according to an
application filed in bankruptcy court.
   
Over the 17 years that attorney John Doran and his firm have been involved
in the cases, they have received about $1.35 million in compensation,
according to the application, filed Thursday in U.S. Bankruptcy Court, Middle
District of Pennsylvania.
    The filing is included in the proposed distribution of money from the sale
of the Blue Coal and Glen Nan properties.
   
Trustee Frank J. McDonnell has objected to the Doran & Nowalis bonus
payment, but has included the payment in the proposed distribution.
   
McDonnell personally is set to receive $536,313.
   
A hearing and final meeting of creditors is scheduled to begin 10 a.m. Dec.
9 in Courtroom 1 of the federal building at 197 S. Main St. in Wilkes-Barre.
   
A total of nearly $3.6 million will be paid to administrative and priority
claims, including Doran & Nowalis and McDonnell.
   
And, approximately $4 million is available for distribution to creditors
holding allowed unsecured claims. They are scheduled to receive about 63
percent of their allowed claims, which totaled almost $6.4 million.
   
Other proposed payments for priority claims include:
   
Klett Lieber Rooney & Schorling, counsel for the trustee, $425,675.
   
McGrail Merkel Quinn & Associates, accountant for the trustee, $72,853.
   
Resource Technologist Corp., $24,478.
   
Commonwealth of Pennsylvania, $120,000 and $416,823.
   
Proposed payments for unsecured claims include:
   
Delaware & Hudson Railway Co. $11,728 (out of an allowed claim of
$18,511.47).
   
Shipping & Coal Co., $354,931 (out of an allowed claim, $560,235).
   
State Workmen’s Fund Insurance, $52,510.32 (out of an allowed claim of
$82,884).
   
State of New York, $346,242.49 (out of an allowed claim of $546,520.55).
   
David A. Tamburro trading as Tam’s Machine Shop, $16,889.18 (out of an
allowed claim of $26,658.44).
   
Rockwood Insurance Co. $24,391.28 (out of an allowed claim of $38,500).
   
Earth Conservancy, the organization created by U.S. Rep. Paul Kanjorski,
D-Nanticoke, to carry out his vision of transforming barren mine fields into
valuable real estate, purchased the former Blue Coal property in August 1994
for $14.6 million.
   
The purchase, approved in the summer of 1994, ended one of the nation’s
longest-running bankruptcy cases. Doran had represented several Blue Coal
trustees until the court forced him out after he objected to the Earth
Conservancy deal.
   
The distribution of almost $7.6 million to be decided next month is the
last of the $31 million being paid out to creditors through the bankruptcy
court. Much of the money already has been paid to 22 municipalities, seven
school districts and Luzerne County.