Diocese Granted Extension for Reorganization Plan

Duluth News Tribune
August 25, 2016

http://www.duluthnewstribune.com/news/4101839-diocese-granted-extension-reorganization-plan

A judge has granted the Diocese of Duluth an extension to file its plans for reorganization.

U.S. Bankruptcy Judge Robert Kressel on Thursday approved the diocese's motion to extend the deadline from Sept. 1 to March 17.

The diocese had requested the extension earlier this month, citing a planned mediation session in November with the creditors' committee representing victims of child sexual abuse. No objections were filed, as both sides have expressed a desire to reach a settlement.

The diocese, which is facing 125 abuse claims, filed for Chapter 11 protection in November after being hit with a $4.9 million verdict last November. The judge must sign off on a plan for the diocese to repay its creditors before it can regain control of its finances.