MINNESOTA
Star Tribune
Article by: JEAN HOPFENSPERGER , Star Tribune Updated: March 27, 2015
The archdiocese, which has filed for Chapter 11 bankruptcy, seeks a Nov. 30 deadline to submit a reorganization plan.
The Archdiocese of St. Paul and Minneapolis has asked a federal bankruptcy court to extend its deadline for filing a reorganization plan to Nov. 30.
U.S. bankruptcy code gives the archdiocese exclusive rights to propose a reorganization plan within 120 days of petitioning for Chapter 11 bankruptcy, which it did on Jan. 16. The court can extend that “exclusivity period” for good cause.
The archdiocese argued that it needed more time to work with insurance carriers to determine liability. It entered into mediation with the carriers, abuse victim creditors and other creditors shortly after filing for Chapter 11. The bankruptcy came in response to an unprecedented wave of clergy abuse lawsuits filed since 2013.
“There are a number of difficult issues to be resolved before completion of the mediation process,” according to the notice filed this week. “In particular, it is imperative that the Archdiocese and the Committee have sufficient time to negotiate with the liability insurance carriers for contribution toward a comprehensive and global settlement and consensual plan of reorganization.
“It is highly unlikely that the negotiation of these issues will be completed in time to permit the Archdiocese to file its plan within 120 days of the petition date.”
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