Archdiocese: More time for bankruptcy reorganization plan, former hotel sale price reduced

By Haidee V. Eugenio
Pacific Daily News
May 13, 2019

https://www.guampdn.com/story/news/local/2019/05/13/church-seeks-more-time-reorganization-plan-bankruptcy-case/1185471001/

Religious faithful and clergies of parishes islandwide gather to celebrate the annual Chrism Mass at the Dulce Nombre de Maria Cathedral-Basilica in Hagåtña, April 18, 2019. Photo by Frank San Nicolas

The Archdiocese of Agana is seeking more time to present its reorganization plan under the Chapter 11 bankruptcy process, after all clergy sex abuse claims are filed by Aug. 15 and mediation is completed to settle those claims.

At the same time, the archdiocese revised its proposed sale price for the former Accion Hotel from the initial $5.4 million to $5.35 million.

Sale proceeds from the former hotel and seminary in Yona, as well as other property, will go toward paying more than 200 Guam clergy sex abuse claims against the archdiocese.

Archdiocese attorneys asked the federal bankruptcy court to give the church until Sept. 16 to file a plan for reorganization and disclosure statement, and until Nov. 18 to obtain acceptance of the plan.

Church attorneys said the requested extension will give the archdiocese a reasonable amount of time to propose a confirmed plan of reorganization.

The deadline to file clergy sex abuse claims is Aug. 15, 2019.

"Once that number is learned, it is hoped that the plaintiffs, the Unsecured Creditors' Committee, and the debtor, the insurance carriers, will take the issues to mediation with the goal of arriving at a settlement and a consensual plan of reorganization," church attorneys said.

The archdiocese filed on Jan. 16 a Chapter 11 bankruptcy petition so it can reorganize its finances, continue to operate its parishes, schools and other ministries, and be able to compensate clergy sex abuse survivors with claims.

Archdiocese attorneys said in a May 10 federal court filing that the proposed sale price for the former Accion Hotel was reduced by $50,000 after TF Investment, the proposed buyer, completed its investigation of the property, including its ability to be insured.

Investigations also included findings that a large electrical generator supplying power to the entire site is missing, the condition of the electrical and plumbing being in need of repairs not anticipated, and copper piping having been removed from the property.