DIOCESE OF NORWICH WILL FILE PLAN OF REORGANIZATION
For more information, contact Jamie Moss, newsPRos, 201-493-1027, jamie@newspros.com
NORWICH – Friday, September 6, 2024– IMMEDIATE RELEASE – The Roman Catholic Diocese of Norwich (Diocese), along with its coverage provider, the Catholic Mutual Relief Society of America (Catholic Mutual), and the Association of Parishes of the Roman Catholic Diocese of Norwich, Connecticut (Parishes) have agreed on, and intend to file today a joint Chapter 11 Plan of Reorganization (Joint Plan) to enable the Diocese to emerge successfully from bankruptcy and provide a meaningful recovery to survivors entitled to a distribution.
Over a year ago, following several mediation attempts overseen by a retired Second Circuit Judge, among others, the Diocese and Official Committee of Unsecured Creditors (Committee), that represents the interests of all unsecured creditors, including survivors, reached an agreement and sought bankruptcy court approval of a plan of reorganization that had broad support from multiple constituents in the case. However, the Committee abandoned the agreement and unilaterally withdrew from that plan in late June, filing its own plan that will result in years of litigation, substantial legal fees, and uncertainty as to any recovery for the survivors. The Committee now stands alone.
In an Order dated August 13, 2024, the Judge presiding over the Diocese bankruptcy gave the Diocese the opportunity to file its own plan, which it is doing today, supported by agreements with various constituencies and funding sources, which provides an alternative to the Committee’s protracted litigation-based plan.
Under the Joint Plan sponsored by the Diocese, Catholic Mutual and Parishes and funded by a coalition of other contributors (that are not contributing to the Committee’s Plan), a Trust will be created and funded with approximately $[30] million – funds that are not immediately available under the Committee’s plan unless they are successful after years of expensive litigation.
Despite repeated efforts by the Diocese to engage the Committee in constructive discussions to reach a consensual plan, the Committee has declined to do so. The Diocese nevertheless continues to hope that a consensual plan can and will be reached, whether through further mediation or otherwise, so that the litigation that will inevitably result from the Committee’s Plan can be avoided and all possible available funds can be used immediately to maximize recovery to survivors and expedite the Diocese’s exit from bankruptcy.
Nothing contained herein shall be construed as a post-petition disclosure or solicitation of the Joint Plan.
Media Contact: Jamie Moss, newsPRos, 201 788-0142, jamie@newspros.com
US BANKRUPTCY COURT APPROVES MOHEGAN TRIBE’S $6.55 MILLION BID FOR MONTVILLE PROPERTY IN BANKRUPTCY PROCEEDING OF THE ROMAN CATHOLIC DIOCESE OF NORWICH
For more information, contact Jamie Moss, newsPRos, 201-493-1027, jamie@newspros.com
Hartford, CT, June 21, 2023 –Judge James J. Tancredi of the U.S. Bankruptcy Court in Hartford granted approval of the auction sale of 113.19 acres of property belonging to the Diocese of Norwich to the Mohegan Tribe. The land is comprised of the real estate and all of its improvements located at 1593 Route 32, Montville, CT, which includes the St. Bernard School. The auction took place on June 2nd in Hartford.
In addition to the $6,550,000 sale price, the bid terms include an initial 20-year lease of the property to St. Bernard School, which under the terms of the bid will remain open.
“This is a great result for all the parties involved. The Diocese receives the funds to compensate alleged sexual abuse survivors and the St. Bernard School remains open to serve the needs of students and families,” said Louis DeLucia, attorney for the Diocese and a partner at Ice Miller. “This is a big step toward resolving claims against the Diocese as we continue to work diligently to reach consensus on a chapter 11 plan of reorganization.”
The Court granted a waiver of the 14-day stay period under U.S. Bankruptcy Rules and the sale closed earlier today following entry of the Sale Order.
“The Committee of Unsecured Creditors recognizes and appreciates that the $6.55 million paid by the Mohegan Tribe is a substantial and appropriate amount,” said Stephen M. Kindseth of Zeisler & Zeisler, P.C., counsel for the Official Committee of Unsecured Creditors. “We anticipate that the net proceeds of this sale will constitute an important component of the entire settlement fund established through the Norwich Diocese’s bankruptcy case for the benefit of survivors of sexual abuse.”
The full terms and conditions of the Sale Order and Sale Motion are available online at the Diocese’s restructuring website: https://www.norwichdiocese.org/Reorganization. They are also available by submitting a written request to the claims and notice agent at https://omniagentsolutions.com/Norwich
BANKRUPTCY COURT APPROVES NORWICH DIOCESAN CORPORATION’S SALE OF MONTVILLE PROPERTY VIA AUCTION ON JUNE 2
For more information, contact Jamie Moss, newsPRos, 201-493-1027, jamie@newspros.com
Hartford, CT, May 12, 2023 – The U.S. States Bankruptcy Court, District of Connecticut, Hartford Division issued an order this week approving the procedures by which the Norwich Roman Catholic Diocesan Corporation will sell 113.19 acres of its property at auction June 2. The property to be auctioned comprises the real estate and all of its improvements located at 1593 Route 32, Montville, CT.
The Diocese requested the Court order in April.
Interested bidders must submit written bids that satisfy all requirements detailed in the Court’s sale procedures to the following entities on or before 4 p.m., May 26, 2023 (“the bid deadline”):
a) Counsel to the Debtor: Ice Miller, 1500 Broadway, 29th Floor, New York, NY 10036,Attn: Louis DeLucia, Esq.; and Robinson & Cole LLP, 280 Trumbull St., Hartford, CT 06106, Attn: Patrick Birney, Esq.;
(b) Office of the United States Trustee for the District of Connecticut, 150 Court Street, Room 302, New Haven, CT 06510, Attn: Steven E. Mackey, Esq. (Steven.E.Mackey@usdoj.gov); and
(c) Counsel to the Official Committee of Unsecured Creditors: Zeisler & Zeisler, PC, 10 Middle St Floor 15, Bridgeport, CT 06604, Attn: Eric Henzy, Esq. and Stephen Kindseth, Esq.
If one or more qualified bids is received by the bid deadline, a transcribed and/or videotaped auction among qualified bidders will take place at 10 a.m., June 2, 2023, at the Hartford office of Robinson & Cole.
Following the auction, a hearing will be held by Judge James J. Tancredi of the U.S. Bankruptcy Court for the District of Connecticut to approve the sale to the successful bidder at 11 a.m., June 7, 2023, at the United States Bankruptcy Court for the District of Connecticut, Abraham Ribicoff Federal Building, 450 Main Street, 7th Floor, Hartford.
Any objection to the sale of the property to the successful bidder or back-up bidder must be filed in writing with the Court and received no later than 4:00 p.m., June 5, 2023. Objections must also be sent to the Counsel to the Debtor, Office of the United States Trustee for the District of Connecticut, and Counsel to the Official Committee of Unsecured Creditors.
The Diocese is seeking a waiver of the 14-day stay period under U.S. Bankruptcy Rules so that the sale can close immediately upon entry of the Sale Order by the Court.
The full terms and conditions of the Sale Motion, the Sale Procedures Order and the Sale Procedures can be found HERE.
They are also available by submitting a written request to the claims and notice agent at https://omniagentsolutions.com/Norwich.