Diocese of Harrisburg asks court for another exclusivity extension

By Sarah Lizee

Olympia, Wash., June 21 – The Roman Catholic Diocese of Harrisburg is seeking another extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Monday with the U.S. Bankruptcy Court for the Middle District of Pennsylvania.

Specifically, the diocese asked the court to extend the plan filing period through Aug. 19 from July 13 and the solicitation period through Oct. 18 from Sept. 13.

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 debtor negotiated a consensual mediation order with the official committee of tort claimants and insurers. The next scheduled mediation is scheduled for June 25.

“The resolution of the adversary proceeding is a gating item to the proposal and confirmation of a consensual plan of reorganization,” the diocese said in its motion.

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

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