
By JIM BUTLER
The U.S. Trustee on Friday filed objection to the Diocese of Alexandria’s proposed amended disclosure statement.
His motion joins that earlier filed by some in suit interests in the case.
The statement is essentially a debtor’s plan for discharging obligations and emerging from Chapter 11 bankruptcy.
The Diocese, which declared Chapter 11 last October, filed an initial statement in late June and a proposed revised version this month.
The September 11 filing proposed a substantially different way of handling one class of unsecured debt, particularly putative abuse claims.
Those claims were the impetus for the bankruptcy proceeding.
Trustee Kevin Epstein’s filing asks the court to deny the amended statement.
It cites alleged faults in the Diocese motion and notes “sweeping changes” it stipulates.
The most apparent to those outside the legal system is a multimillion-dollar reduction in funding earmarked for abuse claims.