I am convinced that whatever benefit accrued to this estate, other than that afforded by the Reorganization Trustee and by the Rippel Foundation, resulted from the efforts of Mr. Tumarkin, who was not only the attorney for the Bondholders' Committee, but also a member of the executive committee thereof.
For services rendered in the New Jersey Superior Court proceeding already alluded to, and in the proceeding, Riker, Danzig, March & Scherer, as attorneys for Fidelity Union Trust Company, Mortgage Indenture Trustee, ask $ 7,500.00 and reimbursement in the amount of $ 1.29 for disbursements. These attorneys represent that the services rendered by them in this proceeding consumed an estimated total of 185 hours. These services consisted of conferences with other interested parties, legal research, and appearances in Court. They were of value to the debtor's estate, and to the bondholders. They will be allowed the sum of $ 5,500.00 for such services, and reimbursement in the amount of $ 1.29 for their disbursements.
Fidelity Union Trust Company, as Trustee under the Mortgage Indenture dated March 1, 1923, claims a lien for services, pursuant to the provisions of said Indenture and of Article VIII B (3) of the Plan of Reorganization, upon the proceeds of sale of the mortgaged real estate, for compensation for the services of said Indenture Trustee from the date of said mortgage, in the amount of $ 3,000. The same claimant seeks compensation in the sum of $ 1,100 in addition to the lien aforesaid, for further services to be rendered in connection with the distribution of the funds to debtor's bondholders. The nature and particulars of these services have been set forth in proof of claim filed. I find the amounts claimed reasonable and conclude that the claimant is entitled to be paid out of the moneys in the hands of the Reorganization Trustee, the total sum of $ 4,100.00 on that account.
It was the Fannie E. Rippel Foundation, a charitable corporation of New Jersey, and the holder of $ 245,200 face value of debtor's outstanding mortgage bonds, which instituted the New Jersey Superior Court action against the debtor, and which has continued as an active participant in the present Chapter X Reorganization proceedings. Throughout the proceedings in both tribunals, this Foundation has been actively represented and counselled by John E. Toolan, Esq., a member of the Bar of New Jersey of recognized eminence and experience. It seems obvious to the Court that without the cooperation and approval of the Foundation, the confirmation of the Plan of Reorganization, which has been approved and confirmed in these proceedings, would probably not have been possible. Mr. Toolan asks for $ 2,000.00 as compensation for his services, and reimbursement of disbursements in the amount of $ 25.00. No party in interest has opposed or criticized this application, and the Court considers it eminently reasonable under the circumstances of the case. It will therefore be allowed.
Herbert J. Hannoch, Esq., a member of the Bar of New Jersey and an eminent specialist in the filed of tax law, seeks an allowance of $ 500.00 for services rendered to the Trustee, to the attorney for the petitioning creditors, to the Bondholders' Committee, and to the attorney for the Indenture Trustee, in the form of conferences and counseling relating to the probable tax consequences to bondholders of the proposed sale of the debtor's real estate. He also made several Court appearances in connection with certain phases of these proceedings. He estimates an aggregate of time occupied in rendering such services at ten to fifteen hours. No objection was made to Mr. Hannoch's application and the importance of his services in his particular filed to the trustee and to the Bondholders' Committee, needs no explanation. He will be allowed the sum of $ 500.00.
After the approval of the Plan in this matter, the Court found it necessary and desirable that an up-to-date appraisal be made of the debtor's real estate in anticipation of its sale, and as an aid in determining an upset price. A complete appraisal was made by George Goldstein, A.I.A., an eminent and experienced appraiser, in whose judgment the Court has complete confidence. For his services in making that appraisal, he has made a claim of $ 300.00 which the Court finds most reasonable, it is not opposed by any party in interest, and will be allowed to the claimant.
It also became necessary and desirable that accounting services be rendered to the Trustee in his administration of the debtor's estate, and such services were rendered by James J. Hastings, C.P.A., who asks the sum of $ 930.00 as compensation therefor. There is no opposition to the allowance of this amount to this claimant and the Court directs that it be paid.
The application of Lum, Biunno and Tompkins, for compensation for services as attorneys for the debtor, must be denied upon the authority of § 249 of Chapter X, as interpreted by In re Reynolds Investing Co., Inc., 3 Cir.1942, 130 F.2d 60. However, that firm will be allowed the sum of $ 82.90 as reimbursement for disbursements which it incurred in making available to the Court and to the Trustee, in connection with these proceedings, certain information, documentary and otherwise, of substantial importance.
A further application for allowances has been made by Roston, Hort and Brussel, Esqs., attorneys for certain bondholders who represent that they rendered services to their clients involving 17 hours of time, including one Court appearance, for which they seek the sum of $ 1,000. As previously indicated, all of the bondholders have been benefited by the combined services of Messrs. Tumarkin, Toolan and the Trustee, with consequent benefit to the debtor's estate. Since the individuals served by Roston, Hort and Brussel were beneficiaries of the services of the other counsel and the Trustee, they should compensate their attorneys out of their share of the avails of the property sold under the Plan. Accordingly, the claim of Roston, Hort and Brussel is denied.
As heretofore noted, the Trustee in Reorganization has filed his First Intermediate Report and Account, which discloses total receipts by him of $ 711,053.47, disbursements therefrom amounting to $ 9,357.90, and a balance in the hands of the Trustee, on December 6, 1961, in the amount of $ 701,695.57. Due notice of the hearing upon this account was given and plenary hearing held thereon. No objection was made thereto, and the account is, therefore, approved.
An order may be presented embodying the findings and conclusions herein set forth.
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