Diocese of Albany eyes third extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., Dec. 29 – The Roman Catholic Diocese of Albany, New York is seeking a third extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Friday with the U.S. Bankruptcy Court for the Northern District of New York.

The diocese asked the court to extend the exclusive plan filing period through April 8 from Jan. 9 and the exclusive solicitation period through June 7 from March 9.

After entry of the second extension order, the debtor filed an adversary proceeding against its insurers asserting claims with respect to the insurance policies affording coverage for the debtor and non-debtor entities, along with a proposed stipulation staying the prosecution of that action while the parties proceed with mediation of the case.

In addition, the court entered an interim order for mandatory global mediation.

At a hearing held on Thursday, the court appointed Paul J. Van Osselaer and Roger L. Kramer as co-mediators in the case.

Mediation is expected to start by the end of January or early February, with the goal of reaching an agreement on the terms of a Chapter 11 reorganization plan that can be consensually confirmed.

The diocese said its ability to propose a disclosure statement and plan depends on reaching agreement of plan funding and both monetary and non-monetary plan terms.

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

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