By JIM BUTLER
The Diocese of Alexandria is asking more time to sell its proposed reorganization plan to parties in its Chapter 11 bankruptcy case.
Following arbitration the Diocese on June 30 filed a negotiated reorganization framework and the court set a July 31 deadline for the Diocese having exclusive right to solicit acceptance by those involved.
Subsequently that deadline was extended by request to September 30.
Citing continuing work on details, Diocese counsel Bradley Drell asks for a new deadline of December 18. A hearing is scheduled August 25.
The Diocese, facing a growing number of clerical abuse claims, some dating to the 1970s, sought Chapter 11 protection last October 31, citing projected costs of clearing that docket.
It filed a motion a motion this month asking the court to appoint Lafayette attorney Armistead M. Long counsel for any future claims.
Another current motion in the case is a national law firm’s request for interim compensation that will bring its fees payments to $950,000 since October 25 through June 30 and expenses reimbursement to $10,000 (both totals rounded).
A $600,000+ retainer paid in October has been exhausted and the firm seeks the difference.
According to the motion, to be heard September 2, the total incudes billing by Husch Blackwell attorneys for 1,629 hours at a discounted rate of 75 percent of standard.
The Diocese’s most recent operating statement, filed July28 for the month of May, showed a cash balance of $2.61 million.
Gross May income was reported as $490,000; expenses as $758,000.