Diocese of Syracuse disclosure statement denied; new one due March 5

By Sarah Lizee

Olympia, Wash., Feb. 8 – The Roman Catholic Diocese of Syracuse’s disclosure statement for its Chapter 11 plan of reorganization was denied on Thursday by the U.S. Bankruptcy Court for the Northern District of New York.

The court ordered the diocese to file a modified disclosure statement by March 5. Supplemental objections are due by March 22. Another hearing is scheduled to be held on April 2.

The disclosure statement drew five objections from insurers, and an objection from the U.S. trustee overseeing the case.

The court has directed the parties to discuss the issues regarding the disclosure statement and propose the appropriate language to make changes to the document.

“The goal is to allow the parties the opportunity to narrow the outstanding disclosure disputes before returning to the court for further argument,” judge Wendy A. Kinsella said in the order.

The court has also directed the diocese to provide an executive summary of the plan, including a description of the treatment of claims and timing of distributions.

Also required is an explanation of the release and exculpation provisions, and an acknowledgement that third-party releases, if approved, would be subject to district court review, which would delay distributions under the plan.

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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