Rockville diocese’s disclosure statement OK’d; plan hearing May 9

By Sarah Lizee

Olympia, Wash., Feb. 16 – The Roman Catholic Diocese of Rockville Centre, New York’s disclosure statement for its amended Chapter 11 plan of reorganization was approved on Thursday by the U.S. Bankruptcy Court for the Southern District of New York, according to an order.

The confirmation hearing is scheduled for May 9.

The diocese said the plan offers a total of $200 million in compensation as its best and final proposal for settling with survivors of abuse.

Under the plan, the $200 million settlement fund includes a diocesan contribution of $50 million and a contribution of $150 million from parishes, co-insured parties, and other Catholic ministries.

In addition, the diocese and all affiliate parties are contributing the value of their rights against third-party insurance companies as part of the plan.

The plan offers an immediate minimum cash payment of $100,000 to each claimant with a lawsuit against a non-debtor contributor.

It offers other claimants without qualifying lawsuits an immediate minimum cash payment of $50,000.

The balance of the remaining settlement funds would be paid to settlement trusts and allocated to creditors based on trust distribution protocols.

Funds from insurance coverage proceeds will be added to these settlement trusts to fund additional payouts to survivors.

Priority claims, secured claims, lay pension claims and priest pension claims are unimpaired by the plan.

General unsecured claimholders will receive their pro rata share of the GUC plan distribution, which will be GUC plan distribution less amounts paid on account of convenience claims.

Holders of convenience claims will receive cash in an amount equal to 100% of their claims.

The Rockville Centre, N.Y.-based diocese filed bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York on Oct. 1, 2020 under Chapter 11 case number 20-12345.

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