Jun. 21—MONTVILLE — A U.S. Bankruptcy Court judge has approved the Mohegan Tribe’s $6.55 million purchase of the 113-acre parcel that includes St. Bernard School, a transaction specifying that the tribe will lease a 43-acre portion of the Route 32 property to the school for the next 20 years for $1 a year.
James Tancredi, the judge presiding over the Roman Catholic Diocese of Norwich’s Chapter 11 bankruptcy, signed an order approving the sale Tuesday. The Mohegans had offered the winning bid for the parcel in a June 2 auction at the Hartford law offices of Robinson & Cole, the firm representing the diocese.
The diocese has sought to liquidate its assets, including schools such as St. Bernard, to help fund settlements it must pay to alleged victims of sexual assaults by priests and other diocesan employees. Both the diocese and attorneys representing the victims and other creditors have submitted competing bankruptcy plans.
In a May 22 update to Tancredi, mediator Christopher Droney reported that “it appears the parties have made good and substantial progress in developing a joint plan for reorganization” of the diocese and it appears the joint plan will likely be submitted to the court for review in the near future.
“This is a great result for all the parties involved. The diocese receives the funds to compensate alleged sexual abuse survivors and the St. Bernard School remains open to serve the needs of students and families,” Louis DeLucia, an attorney for the diocese and a partner at Ice Miller, said in a statement issued by the diocese’s public relations firm. “This is a big step toward resolving claims against the diocese as we continue to work diligently to reach consensus on a Chapter 11 plan of reorganization.”
The court granted a waiver of the 14-day stay period under U.S. bankruptcy rules…

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