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Published on 9/9/2021 in the Prospect News Distressed Debt Daily.

Diocese of Rockville seeks further extension of exclusive periods

By Sarah Lizee

Olympia, Wash., Sept. 9 – The Roman Catholic Diocese of Rockville Centre, New York is seeking another extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The diocese asked the court to extend the plan filing period through Jan. 29, 2022 from Oct. 1 and the solicitation period through March 30, 2022 from Nov. 30.

The debtor said it is working on reaching a global settlement with its insurers and claimants.

“Understanding the amount of sexual abuse claims asserted against the debtor, and other details relevant to the claims, such as when such claims allege that abuse occurred, will be critical in advancing discussions with the debtor’s insurers towards a global resolution of this Chapter 11 case,” the diocese said in its motion.

“Until the parties have had an opportunity to engage in mediation regarding the sexual abuse claims asserted against the debtor and the potential resolution of such claims through a Chapter 11 plan, the potential claims outstanding against the debtor will remain a significant unresolved contingency.”

A hearing is scheduled for Sept. 23.

The Rockville Centre, N.Y.-based diocese filed bankruptcy on Oct. 1, 2020 under Chapter 11 case number 20-12345.


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