Diocese proposes reorganization plan
By JIM BUTLER
The Diocese of Alexandria proposes obligating up to about $4.8 million to resolve sexual abuse claims dating back to the 1970s.
Diocese counsel this week asked federal bankruptcy court in Shreveport to set an August 26 hearing on its proposal, one that establishes eight classifications of claims as well as how and when they would be settled.
Should the court agree the plan would be submitted to members of those classes for an acceptance vote, with ballots due by October 13 and a confirmation hearing of the count set on October 27.
That’s almost a year since the Diocese filed Chapter 11 last October 31.
The claims classifications included secured and unsecured creditors.
Loan agreements with two banks would be reworked, allowing some payment as well as modifying guarantees.
General convenience claims would be paid at 95% and general unsecured claims at 25%, the former within 60 days of resolution l, the latter 120 days.
Claims by putative abuse survivors and future such claims would fall under one of two alternates, depending on circumstances outlined in the voting process. Payments would be made as claims are resolved.
Under one alternate, $3 million cash would be placed in a trust and a note encumbrance of $2.4 million initiated.
Under the other, the diocese would pay to the trust its liquidation value – cash, real property, and a five-year maximum promissory note, or a combination of such.
The trust would be administered by Diocesan officials.
If the court determines the amount required to satisfy current putative claims exceeds $4.825 million the Diocese notes it may elect to withdraw the plan.