On June 27, 2024, the Supreme Court issued a decision in Purdue Pharma where it held that non-consensual third-party releases are not permitted under the Bankruptcy Code. In other words, persons or entities that have not filed for bankruptcy may not receive a release of liability under a debtor’s bankruptcy plan unless the creditors consent. In the context of Diocesan bankruptcy cases, this means that if a Diocese considers its affiliates (parishes, educational institutions, hospitals, etc.) as separate legal entities—and those affiliates do not file for bankruptcy—they may not receive non-consensual releases from survivors under a bankruptcy plan. However, those affiliates may still receive a release if they receive sufficient consent. The Committee will continue to analyze this legal development in its continuing effort to maximize recovery for survivors in this case.
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Appointment of Paul Van Osselaer as Mediator
On June 7, 2022, the Court appointed Paul Van Osselaer as an additional mediator. The Committee agreed to the appointment of Mr. Van Osselaer. The Committee is continuing to participate in confidential mediation sessions led by Mr. Van Osselaer with the Debtor and its insurers.
Employment of The Claro Group, LLC as the Committee’s Valuation Expert
On June 2, 2022, the bankruptcy court granted the Committee’s application to employ The Claro Group, LLC (“Claro”) as its valuation expert. Claro will provide expert assistance to the Committee with respect to the value of survivor claims and the allocation of the Debtor’s insurance to survivor claims. Claro’s expert services will play a critical role in ensuring that survivors are fairly compensated by the Debtor and its insurers.
Employment of Berkeley Research Group, LLC as the Committee’s Financial Advisor
On March 3, 2022, the bankruptcy court granted the Committee’s application to employ Berkeley Research Group, LLC (“BRG”) as the Committee’s financial advisor. The Court authorized BRG to assist the Committee with analyzing the financial condition of the debtor, among other things. BRG’s analysis will provide insight into the scope of the Debtor’s assets and the Debtor’s ability to compensate survivors.