Staff Reports | For The Bulletin
As part of its bankruptcy proceedings, the Diocese of Norwich has sold 113.19 acres of property to the Mohegan Tribe, located at 1593 Route 32, Montville. The property includes the St. Bernard School and was approved by Judge James J. Tancredi of the U.S. Bankruptcy Court in Hartford.
In addition to the $6,550,000 sale price, the bid terms include an initial 20-year lease of the property to St. Bernard School, which under the terms of the bid will remain open.
“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,” said Louis DeLucia, attorney for the Diocese and a partner at Ice Miller. “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 and the sale closed on June 21 following entry of the Sale Order.
Background: Norwich’s Catholic diocese files for bankruptcy protection due to sexual abuse lawsuits
“The Committee of Unsecured Creditors recognizes and appreciates that the $6.55 million paid by the Mohegan Tribe is a substantial and appropriate amount,” said Stephen M. Kindseth of Zeisler & Zeisler, P.C., counsel for the Official Committee of Unsecured Creditors. “We anticipate that the net proceeds of this sale will constitute an important component of the entire settlement fund established through the Norwich Diocese’s bankruptcy case for the benefit of survivors of sexual abuse.”
The full terms and conditions of the Sale Order and Sale Motion are available online at the Diocese’s restructuring website: https://www.norwichdiocese.org/Reorganization. They are also available…