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Published on 1/20/2023 in the Prospect News Distressed Debt Daily.

Diocese of Norwich wants to keep mediating through confirmation

By Sarah Lizee

Olympia, Wash., Jan. 20 – The Norwich Roman Catholic Diocesan Corp., known as the Roman Catholic Diocese of Norwich, is seeking to continue court-ordered mediation through confirmation of its recently filed Chapter 11 plan, according to a motion filed with the U.S. Bankruptcy Court for the District of Connecticut.

The mediator’s term is currently set to expire on Feb. 4.

So far, the diocese, official committee of unsecured creditors and other parties in interest have engaged in five mediation sessions.

There has also been “shuttle mediation,” where the mediator has acted as an intermediary between various constituents. The diocese said this method has been highly effective in brokering multiple agreements in the case.

The diocese said the plan, which was filed Jan. 17, contains the by-product of the mediator’s efforts so far.

Certain disputes remain, however.

The diocese said continued mediation will likely be necessary to facilitate remaining bridge-building.

The debtor added that extending the mediation order to facilitate a plan would be better than depleting estate assets through a contested confirmation process.

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


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