Diocese of Albany pushes for mediation over claims, Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Oct. 31 – The Roman Catholic Diocese of Albany, New York is seeking mandatory global mediation with the goal of developing a process to evaluate claims and to formulate a Chapter 11 plan, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Northern District of New York.

The diocese said mediating the following issues will greatly assist in the process of creating a plan:

• Assessment of claim credibility and the debtor’s potential legal liability for the abuse claims;

• Insurance coverage issues including any defenses or exceptions to coverage;

• Allocation of insurance coverage among the debtor and parishes as additional insureds under the policies;

• Inclusion of the contingent, unliquidated and disputed claims in the St. Clare’s action in the event that the debtor is found to be liable to the St. Clare’s pensioners;

• Contributions by the debtor, parishes, and insurers to fund any reorganization plan;

• Terms of a consensual plan of reorganization;

• Terms of a channeling injunction to benefit any party making a substantial contribution to the plan;

• Development of a claims submission and evaluation process for a post-confirmation trust;

• Payment of claims issues including future claims of currently unknown claimants;

• Non-monetary plan provisions; and

• Establishing a contingent provision for the benefit of the St. Clare’s pensioners in the event that the debtor is found to be liable in the St. Clare’s action.

The diocese has asked that the debtors, the official committee of tort claimants, the official committee of unsecured creditors, insurers and other parties as the court directs to participate in the mediation.

The Albany, N.Y.-based diocese filed bankruptcy on March 15, 2023 under Chapter 11 case number 23-10244.

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