Committee of unsecured creditors created in Diocese bankruptcy

By JIM BUTLER

A meeting of the Bankruptcy Court-approved official committee of the Diocese of Alexandria’s creditors is scheduled for December 9.

The Diocese filed for Chapter 11 bankruptcy reorganization protection on October 31 in the wake of mounting claims by parties alleging sexual improprieties by priests, most decades ago.

According to available records, the court has not yet set a bar date in the matter. That is the deadline for any claiming to be a party in the matter.

The creditors’ committee, the official panel of unsecured creditors, was created November 21,  according to the record, following the case’s initial hearing of November 5.

According to its petition the Diocese had about $7.8 million in unsecured obligations on the filing date. $7.1 million of that was related to priest retirement benefits, health care and the like.

The December 9 meeting (known in bankruptcy lingo as a Section 341) is a dial-in session at which the trustee asks the under-oath debtor questions about financial condition.

It also provides opportunity for creditors to ask about their debts.

The meeting is an early step in what can be a protracted process.