Riled Insurers Win Time To Probe Diocese's New Ch. 11 Plan

By Jeannie O'Sullivan (April 27, 2022, 9:14 PM EDT) -- A New Jersey bankruptcy judge said Wednesday he would delay the confirmation of a Roman Catholic diocese's Chapter 11 plan at the behest of insurers blindsided by the debtor's abandonment of a deal that would have capped their payouts for clergy sex abuse survivors at $30 million.

U.S. Bankruptcy Judge Jerrold N. Poslusny Jr. vacated a schedule that included a June 1 start date for the confirmation hearing, agreeing that insurers need more time to study and possibly object to an amended reorganization plan that leaves the carriers confused about their duties with respect to compensation for the survivors.

The Diocese...

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