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  More Time Sought in Diocese Case

By Gregg Hennigan
The Gazette
September 28, 2007

http://www.gazetteonline.com/apps/pbcs.dll/article?AID=/20070928/NEWS/70928018/1006/NEWS

The Roman Catholic Diocese of Davenport is again seeking more time to file a reorganization plan in its bankruptcy case so it can resolve insurance issues that could add millions of dollars to the settlement.

The diocese's request, made in a joint motion with the case's creditors committee, was filed today in U.S. Bankruptcy Court for the Southern District of Iowa.

It is the second time the two sides have asked the court to give the diocese more time to file its reorganization plan as they work toward an agreement.

Last month, Judge Lee Jackwig moved the original deadline of Aug. 15 to Oct. 1. Now, the diocese and creditors committee, which includes people who claim they were abused by diocese priests, want the plan to be due Nov. 16 and approved by Jan. 16.

The diocese, which includes about 105,000 Catholics, filed for Chapter 11 bankruptcy protection in October in the face of mounting lawsuits from its clergy sexual abuse scandal.

A total of 156 claims from alleged abuse victims have been filed in the case, according to court records.

The reorganization plan will detail how the diocese plans to emerge from bankruptcy and how much it will pay its creditors.

As in their first request for an extension, the diocese and the creditors committee said in today's motion that they want more time to review the 156 claims and to explore possible insurance coverage that could add millions of dollars to the settlement.

Also, mediation is scheduled for early November to reach a settlement of the claims against the diocese's main insurer, according to the motion.

"Given the severity and magnitude of the claims filed and the need to continue discussions with the insurance carriers, it is impractical at this point to conclude and file a joint and consensual plan or reorganization by the deadline of October 1, 2007," the two sides said in the motion.

 
 

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