Rockville diocese’s asset sale not for expenses, committee says

Chicago, Nov. 9 – The official committee of unsecured creditors of the Roman Catholic Diocese of Rockville Centre, New York for the most part supports the bidding motion for the sale of the diocese’s assets, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

The assets, which are expected to fetch around $80 million, include Federal Communication Commission licenses and cell towers.

The committee, however, has concerns about the use of the proceeds.

The diocese has claimed that it may only move forward with the sale if the diocese is provided access to the sale proceeds to continue meeting its ongoing expenses.

The committee asserts that the proceeds should be used to compensate the victims of the diocese.

The committee recommends that any proposed sale order should set aside a substantial portion of the proceeds for use in connection with the funding of a confirmed plan of reorganization and the diocese should be limited in its ability to access the sale proceeds for payment of administrative expenses.

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

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