Diocese of Harrisburg’s Chapter 11 plan accepted by voting classes

By Sarah Lizee

Olympia, Wash., Feb. 8 – The Roman Catholic Diocese of Harrisburg reported the voting results for its Chapter 11 plan in a tabulation summary filed Tuesday with the U.S. Bankruptcy Court for the Middle District of Pennsylvania.

For known survivor claims, 44 holders, or 97.78% in number, of $44.00, or 97.78% in amount, voted to accept the plan, while one holder, or 2.22% in number, of $1.00, or 2.22% in amount, voted to reject the plan.

One holder of $1.00 of known survivor claims also voted to accept the plan.

Holders of non-survivor litigation claims class were entitled to vote, but no ballots receives. Under the plan, this class is presumed accepted by this class.

All 135 holders of $135.00 of parish and school claims also voted to accept the plan.

The confirmation hearing is scheduled for Feb. 15.

As previously reported, the plan will channel survivor claims asserted against the debtor and other protected parties to a trust.

To fund the trust, the plan provides the debtor will make a contribution in the amount of $5.5 million. Parishes, schools and related non-debtor entities will make contributions totaling $2 million. And, settling insurers will make contributions totaling $10.75 million, as reported previously.

The debtor will also contribute or cause to be contributed up to $600,000 to the trust, if and to the extent unknown survivor claims are filed in the bankruptcy case or with the trust.

The funds from the trust will be used to resolve all survivor claims.

Trust distribution procedures will establish the methodology by which survivor claims will be resolved, establish the process by which survivor claims will be reviewed, and specify liquidated values for compensable claims based on the underlying abuse.

There are no other priority claims or other secured claims. General unsecured claims, late-filed survivor claims and pension plan note claims are unimpaired.

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

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