Diocese appears for Chapter 11 First Day motions

Catholic Star Herald

October 22, 2020

By Michael Walsh

With the Oct. 1 announcement of filing for Chapter 11 reorganization under the U.S. Bankruptcy Code, the Diocese of Camden appeared for the First Day motions on Oct. 7 at the United States Bankruptcy Court, District of New Jersey, federal court building in Camden in front of Judge Jerrold N. Poslusny Jr.

In court that day were Bishop Dennis Sullivan, Father Robert Hughes, Vicar General of the Diocese, Laura Montgomery, Director of Temporal Services and head of the diocesan Finance Department and attorneys for the Diocese, including those from the law firm of McManimon, Scotland & Baumann, LLC who are representing the Diocese in the reorganization. Also in attendance, in person and via telephone, were attorneys representing sex abuse victims with lawsuits against the diocese.

First Day motions, usually conducted one week after the initial filing, are utilized by organizations seeking financial relief on an expedited basis and typically include, but are not limited to, requests to: maintain existing banking accounts and cash management systems; maintain and set adequate assurance for utility companies; pay prepetition payroll; etc., with admissible evidence to support the request. In the case of the Diocese, the First Day motions were done for just these reasons. All motions and accompanying documents can be found on the PrimeClerk link on the diocesan website: www.camdendiocese.org/reorganization.

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