The Archdiocese of St. Paul and Minneapolis has asked a federal bankruptcy court to extend its deadline for filing a reorganization strategy to Nov. 30.
U.S. bankruptcy code offers the archdiocese exclusive rights to propose a reorganization program inside 120 days of petitioning for Chapter 11 bankruptcy, which it did on Jan. 16. The court can extend that &ldquoexclusivity period&rdquo for very good cause.
The archdiocese argued that it needed far more time to perform with insurance coverage carriers to figure out liability. It entered into mediation with the carriers, abuse victim creditors and other creditors shortly right after filing for Chapter 11. The bankruptcy came in response to an unprecedented wave of clergy abuse lawsuits filed given that 2013.
&ldquoThere are a number of complicated concerns to be resolved prior to completion of the mediation method,&rdquo according to the notice filed this week. &ldquoIn specific, it is imperative that the Archdiocese and the Committee have enough time to negotiate with the liability insurance coverage carriers for contribution toward a complete and international settlement and consensual plan of reorganization.
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