Diocese of Harrisburg receives 90-day exclusivity extension

By Sarah Lizee

Olympia, Wash., Dec. 16 – The Roman Catholic Diocese of Harrisburg secured a 90-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Middle District of Pennsylvania.

Specifically, the court extended the plan filing period through March 15 and the solicitation period through May 14.

The debtor said in its motion that it began an adversary proceeding against its insurers to facilitate and possibly litigate a global resolution of all of the debtor’s insurance coverage issues, the outcome of which will largely guide the debtor in the drafting of its ultimate plan of reorganization.

To that end, the diocese has negotiated a consensual mediation order with official committee of tort claimants and insurers. The mediation is scheduled to take place Feb. 8 through Feb. 9.

In addition, the debtor said it must receive and review each claim filed by creditors, primarily those claims arising from abuse, before it can formulate a plan.

“Until a proper determination of the scope of the insurance proceeds and abuse claims is made, it would be difficult, if not impossible, for the debtor to formulate a confirmable plan of reorganization,” the motion said.

The diocese filed bankruptcy on Feb. 19, 2020 under Chapter 11 case number 20-00599.

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