Diocese of Norwich shifts timeline, terms for sale of school property

Chicago, May 5 –Norwich Roman Catholic Diocesan Corp., known as the Roman Catholic Diocese of Norwich, was in court on Friday to modify the sale procedures for 113 acres of land in Montville, Conn., according to a filing with the U.S. Bankruptcy Court for the District of Connecticut.

The timeline is being extended.

The bid deadline will now be May 22 with an auction on May 26.

The diocese was hoping to do a sale-leaseback transaction whereby St. Bernard’s School of Montville, Inc. could still operate on the property.

The sale terms were changed where that would be a definite part of the terms of the sale wherein a new school lease will become effective immediately after the closing date.

The stalking horse section was stricken from a redline version of the filing.

Previously, the diocese engaged in negotiations with two potential purchasers, Thames River Acquisition, LLC and Saints Country, LLC, regarding the terms and conditions of written sale agreements and a new written lease with the school.

Both Thames Rivers’ and Saints Country’s letters of intent provide for a purchase price of $6 million.

The diocese said that after consultation with the official committee of unsecured creditors, it decided to file the bid procedures motion.

The diocese is seeking to sell the property at auction in connection with its plan of reorganization to help create a pool of cash to fund a trust that will make distributions to individuals who have asserted abuse claims against the diocese.

The Norwich, Conn.-based diocese filed bankruptcy on July 15, 2021 under Chapter 11 case number 21-20687.

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