MINNESOTA
Duluth News Tribune
By Tom Olsen
The Diocese of Duluth has been granted an extension to deliver its plan to emerge from bankruptcy protection.
The diocese, which has been under Chapter 11 protection since December 2015, was scheduled to file a reorganization plan by Friday, but U.S. Bankruptcy Judge Robert Kressel this week granted a motion to extend that deadline as the diocese continues to seek coverage of sexual abuse claims from its insurers.
“Despite the ongoing litigation, the Diocese (remains) optimistic that the parties will reach a consensual plan through the mediation process,” attorneys Ford Elsaesser and Phillip Kunkel wrote in the motion. “However, before the parties are able to negotiate a plan of reorganization several legal issues need to be resolved.”
The diocese, which was hit with a $4.9 million verdict weeks before filing for bankruptcy, is facing a total of 125 abuse claims filed under the Minnesota Child Victims Act.
Note: This is an Abuse Tracker excerpt. Click the title to view the full text of the original article. If the original article is no longer available, see our News Archive.