March 7, 2016
The Diocese of Gallup’s bankruptcy case continues to be marked by a series of delays.
U.S. Bankruptcy Judge David T. Thuma’s goal of seeing the Gallup Diocese file its plan of reorganization Monday failed to materialize after a status conference Friday was canceled and rescheduled for Tuesday.
A few weeks ago, the diocese’s own goal of filing its reorganization plan in early February became a casualty of a dispute between two other parties in the case — attorneys for Catholic Mutual, the diocese’s current insurer, and Michael P. Murphy, the former future claims representative who resigned his position.
During a brief court hearing Tuesday, Thomas Walker, a diocesan attorney, explained the latest delay was caused by the illness of the diocese’s lead bankruptcy attorney.
“We had a significant holdup last week because Susan Boswell got very sick and was out of commission for the week, and it did slow things quite a bit,” Walker told Thuma.
Boswell attended Tuesday’s hearing by telephone. Although both she and Walker expressed optimism that the diocese could get a reorganization plan on file next week, Thuma suggested a later date for the next hearing.
“I don’t want to have another conference where we don’t have a plan. ... Once we get a plan on file, we’ll probably have enough to talk about,” Thuma said. “I’d like to have this soon afterwards so we can talk about scheduling of the disclosure statement hearing and plan confirmation hearing.”
Boswell then suggested the hearing be held March 21.
“That way no excuses — absolutely the plan and the relevant motions and the disclosure statement will be on file,” she said.
Thuma agreed and scheduled the continued status hearing for 11 a.m. March 21.