Diocese of Syracuse disclosure statement hearing set for Feb. 6

By Sarah Lizee

Olympia, Wash., Jan. 5 – The Roman Catholic Diocese of Syracuse’s hearing on approval of the disclosure statement for its Chapter 11 plan of reorganization is scheduled for Feb. 6, according to an order filed Thursday with the U.S. Bankruptcy Court for the Northern District of New York.

Objections are due by Jan. 30.

As previously reported, the diocese said that to compensate abuse claimants, the debtor and some of its primary stakeholders, including the official committee of unsecured creditors and the committee members who are represented by state court counsel that collectively represent over 45% of abuse claimants engaged in discussions that have resulted in the formulation of the plan.

The plan establishes a trust funded by a $100 million contribution from the diocese and participating parties and the assignment to the trust of certain insurance claims against non-settling insurers.

A trustee will liquidate the trust assets and distribute the proceeds to the abuse claimants.

In exchange for the contributions to the trust, the diocese and other parties will receive releases.

The plan further provides that the holders of allowed administrative claims, priority tax claims, non-tax priority claims, professional fee claims, secured claims, pass-through claims and general unsecured claims will be paid in full.

The Syracuse, N.Y.-based diocese filed bankruptcy in the U.S. Bankruptcy Court for the Northern District of New York on June 19, 2020 under Chapter 11 case number 20-30663.

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