This is really too much!
PAUL KANJORKSI PUTS NORTHEASTERN PENNSYLVANIA IN THE RECORD BOOKS FOR THE MOST EXPENSIVE BOWLING GAME IN THE HISTORY OF MANKIND!
9.3 million dollars from your Congressman uncle, 1.34 million dollars owed to creditors, and you can put what’s left in the garage of a bowling alley?
The following story appeared in the April 7th edition of the Wilkes-Barre Pa. Times-Leader.
April 7 Cornerstone assets to be abandoned
$1M in claims, property worth a few thousand
ANDREW M. SEDER aseder@timesleader.com
WILKES-BARRE – The federal Bankruptcy Court-appointed trustee overseeing the Cornerstone Technologies case filed paperwork Sunday notifying more than 35 creditors that the failed-company’s assets will be abandoned. The filing signals the case is nearing closure.
Among the creditors contacted by trustee Robert P. Sheils Jr. were the Office of Naval Research, Penn State University and the University of Missouri at Rolla.
There were more than $1 million in creditor claims when Cornerstone filed for Chapter 7 bankruptcy in September 2006. The property available for creditors to retrieve is worth a few thousand. Sheils classifies the property, which has been stored in the parking garage of a Nanticoke bowling alley, as having “no excess value to benefit the estate and no equity exists for creditors.”
Cornerstone Technologies, a research company that received more than $9 million in federal grants and contracts, halted operations in 2003. The company, which was operated by U.S. Rep. Paul Kanjorski’s daughter and four of his nephews, promised to create hundreds of jobs and to turn the Wyoming Valley into a technology hotspot. Kanjorski, D-Nanticoke, earmarked several million dollars in federal spending toward the company and is the reason, according to one of the company’s former employees and a listed creditor, the company failed.
“The moment we had a greedy congressman trying to stuff his pockets with money, we were through,” said Bruce Conrad, of Weatherly, in March. Conrad owned 20 percent of the company. An additional 20 percent was owned by Peter Kanjorski, a Nanticoke attorney and a nephew of the congressman. The remaining 60 percent was owned by KOR Holdings, a partnership owned by the congressman’s daughter Nancy and nephews Peter, Paul Eric, Mark and Russell.
Creditors have 15 days to file an objection to the abandonment notice. If nobody does so the property would be abandoned. Among the property are office equipment and furniture and barrels of graphite.
Attorney John H. Doran, who represents Cornerstone, said it’s likely that the property will be retained by Cornerstone once it’s abandoned. He said that’s the likely scenario with so many creditors and so little value.
Andrew M. Seder, a Times Leader staff writer, may be reached at 570-829-7269.
http://www.timesleader.com/business/20080408_08_cornerstone_as_ART.html
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