Judge extends deadline for Norwich diocese to file bankruptcy plan
Norwich — A federal bankruptcy judge has extended the deadline for the Diocese of Norwich to file its bankruptcy plan until June 14.
The deadline had been April 15 but Judge James Tancredi extended the deadline last week. The Roman Catholic diocese then will have until Aug. 15 to solicit votes from creditors on whether they accept the plan.
The two-month extension also is designed to give the diocese and its creditors an opportunity to engage in mediation to resolve outstanding issues involved in the bankruptcy. These typically can involve liability, damages, assets and ability to pay, future claims and more.
Attorney Stephen Kindseth, whose firm Ziegler and Ziegler of Bridgeport represents the committee of creditors, said Thursday that mediation is very often extremely helpful in facilitating a resolution of a case. If the parties can reach an agreement through mediation, it will not only resolve the case more quickly but avoid more money being spent on legal and professional fees.
"The committee of creditors is very hopeful that the mediation process will be able to maximize the recovery for the (sexual abuse) survivors," he said.
The diocese filed for Chapter 11 bankruptcy in July as it faced more than 60 lawsuits filed by men who say they were sexually assaulted as boys by Christian Brothers and other staff at the diocese-run Mount Saint John Academy, a school for troubled boys in Deep River, from 1990 to 2002. Since then additional people, whose sexual assault allegations involved not only the school but diocesan churches, have filed claims in the bankruptcy case. In addition, various other creditors will be seeking a portion of the diocese's assets.
The bankruptcy process, which freezes lawsuits against the diocese, will assess the assets of the diocese and determine how much each victim will receive in damages. The 51 parishes in the diocese have joined the diocese in seeking bankruptcy protection from sexual abuse claims and will have to contribute funds to the settlement. This would leave victims unable to sue the parishes in the future.
March 15 was the deadline for victims and other creditors to file claims in the case.
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