Diocese of Syracuse disclosure statement draws U.S. trustee objection

By Sarah Lizee

Olympia, Wash., Jan. 30 – The Roman Catholic Diocese of Syracuse’s disclosure statement for its Chapter 11 plan of reorganization brought an objection from Region 2 U.S. trustee William K. Harrington, according to documents filed Tuesday with the U.S. Bankruptcy Court for the Northern District of New York.

Harrington said the disclosure statement omits meaningful information and fails to explain and justify the proposed treatment for creditors.

“Key provisions of the disclosure statement make it unconfirmable, including expansive, abusive, over-broad, and inappropriate non-consensual third-party releases and exculpation clauses for which the plan proponents provide little to no legal or factual justification,” the U.S. trustee said in his objection.

The disclosure statement hearing is scheduled for Feb. 6.

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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