On November 7, 2024, the Committee and the Debtor will seek Court approval of the new disclosure statement, ballot forms, and solicitation and voting procedures. Once those are approved by the Court, survivors entitled to vote will have an opportunity to vote on the fourth amended plan. This page will be updated when the deadlines for voting on the fourth amended plan is set by the Court.
Fourth Amended Plan and Supporting Disclosure Statement Filed on September 13, 2024
Following the Supreme Court’s recent decision in Harrington v. Purdue Pharma L. P., 603 U.S.—,144 S. Ct. 2071 (2024), the Committee and Debtor filed the fourth amended plan and supporting disclosure statement on September 13, 2024. The plan was amended consistent with the Supreme Court’s decision that non-consensual third-party releases in a plan are not permitted under the Bankruptcy Code. Because of this development, the fourth amended plan will be distributed to survivors for another vote, after the new disclosure statement, ballot forms, and solicitation and voting procedures are approved by the Court.
Supreme Court Held that Non-Consensual Third-Party Releases Are Not Permitted Under the Bankruptcy Code
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.
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.