Diocese of Norwich gets shorter-than-requested exclusivity extension

By Sarah Lizee

Olympia, Wash., Feb. 1 – Norwich Roman Catholic Diocesan Corp., known as the Roman Catholic Diocese of Norwich, secured an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Connecticut.

Specifically, the court extended the plan filing period through April 15 from Feb. 4 and the solicitation period through June 14 from April 5.

As previously reported, the diocese had asked the court to extend the plan filing period through June 4 and the solicitation period through Aug. 3.

The diocese said it is actively negotiating a plan of reorganization with its creditors, coverage providers and other parties in interest.

“Allowing exclusivity to expire now will only increase the litigation and expenses in this case and would further balkanize the various constituencies,” the diocese said in its motion.

“On the other hand, extending exclusivity will provide the parties additional time they need to negotiate a consensual plan of reorganization.”

The diocese also said that the universe of potential claims against the debtor will not be known until the bar date, which will occur after the end of the current exclusivity deadline.

“Establishing the universe of claims is essential to the formulation and negotiation of a plan,” the diocese said.

The amount of those claims, and other details, such as when such claims allege that abuse occurred, will be critical in advancing discussions with the debtor’s coverage providers and insurers toward a global resolution of the case, the diocese added.

The Norwich, Conn.-based diocese filed bankruptcy on July 15, 2021 under Chapter 11 case number 21-20687.

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