• No results found

scc Doc 764 Filed 09/30/21 Entered 09/30/21 14:36:05 Main Document Pg 1 of 20

N/A
N/A
Protected

Academic year: 2021

Share "scc Doc 764 Filed 09/30/21 Entered 09/30/21 14:36:05 Main Document Pg 1 of 20"

Copied!
20
0
0

Loading.... (view fulltext now)

Full text

(1)

JONES DAY Corinne Ball Todd Geremia

Benjamin Rosenblum Andrew Butler 250 Vesey Street

New York, New York 10281 Telephone: (212) 326-3939 Facsimile: (212) 755-7306 Counsel for the Debtor

and Debtor in Possession

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK

In re:

THE ROMAN CATHOLIC DIOCESE OF ROCKVILLE CENTRE, NEW YORK,

1

Debtor.

: : : : : : :

Chapter 11

Case No. 20-12345 (SCC)

NOTICE OF HEARING ON THE

DEBTOR’S MOTION FOR ENTRY OF AN ORDER

APPOINTING A LEGAL REPRESENTATIVE FOR FUTURE CLAIMANTS PLEASE TAKE NOTICE that on September 30, 2021, the above-captioned debtor and debtor-in-possession (the “Debtor”) filed the Debtor’s Motion for Entry of an Order Appointing a Legal Representative for Future Claimants (the “Motion”) with the United States Bankruptcy Court for the Southern District of New York (the “Court”).

PLEASE TAKE FURTHER NOTICE that any objections to the Motion must be in writing, conform to the Federal Rules of Bankruptcy Procedure and the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the Southern District of New York, be filed by October 7, 2021 at 4:00 p.m. (Prevailing Eastern Time), and shall be served on (a) the Debtor, c/o The Roman Catholic Diocese of Rockville Centre, New York, 50 North Park Avenue P.O. Box 9023, Rockville Centre, NY 11571-9023; (b) counsel to the Debtor, Jones Day, 250 Vesey Street, New York, New York 10281-1047 Attn: Corinne Ball, Esq., Todd Geremia, Esq., Benjamin Rosenblum, Esq., Andrew Butler, Esq.; and (c) William K.

1

The Debtor in this chapter 11 case is The Roman Catholic Diocese of Rockville Centre, New York, the last

four digits of its federal tax identification number are 7437, and its mailing address is 50 North Park Avenue P.O. Box

9023, Rockville Centre, NY 11571-9023.

(2)

-2-

Harrington, U.S. Department of Justice, Office of the U.S. Trustee, 201 Varick Street, Room 1006, New York, NY 10014, Attn: Greg M. Zipes, Esq. and Shara Cornell, Esq.

PLEASE TAKE FURTHER NOTICE THAT a hearing to consider such Motion and any objections related thereto (the “Hearing”) will be held on October 14, 2021 at 10:00 a.m.

(Prevailing Eastern Time) before the Honorable Shelley C. Chapman, United States

Bankruptcy Judge, United States Bankruptcy Court for the Southern District of New York, One Bowling Green, New York, NY 100004.

PLEASE TAKE FURTHER NOTICE that in accordance with General Order M-543, dated March 20, 2020 (“General Order M-543”),

2

the Hearing will be conducted telephonically.

Any parties wishing to participate must do so telephonically by making arrangements through CourtSolutions LLC (www.court-solutions.com). Instructions to register for CourtSolutions LLC are attached to General Order M-543.

PLEASE TAKE FURTHER NOTICE that copies of each pleading can be viewed and/or obtained by: (i) accessing the Court’s website at www.nysb.uscourts.gov, or (ii) from the Debtor's notice and claims agent, Epiq Corporate Restructuring, LLC, at

https://dm.epiq11.com/drvc or by calling (888) 490-0633. Note that a PACER password is needed to access documents on the Court’s website.

[Remainder of Page Intentionally Blank]

2

A copy of the General Order M-543 may be obtained by visiting www.nysb.uscourts.gov/news/general-

order-m-543-court-operations-under-exigent-circumstances-created-dovid-19.

(3)

-2- Dated: September 30, 2021

New York, New York Respectfully submitted, /s/ Corinne Ball

Corinne Ball Todd Geremia

Benjamin Rosenblum Andrew Butler JONES DAY 250 Vesey Street

New York, NY 10281-1047 Telephone: (212) 326-3939 Facsimile: (212) 755-7306 Email: [email protected]

[email protected] [email protected] [email protected] Counsel for the Debtor

and Debtor in Possession

(4)

JONES DAY Corinne Ball Todd Geremia

Benjamin Rosenblum Andrew Butler 250 Vesey Street

New York, New York 10281 Telephone: (212) 326-3939 Facsimile: (212) 755-7306 Proposed Counsel for the Debtor and Debtor in Possession

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK

In re:

THE ROMAN CATHOLIC DIOCESE OF ROCKVILLE CENTRE, NEW YORK,

1

Debtor.

: : : : : : :

Chapter 11

Case No. 20-12345 (SCC)

DEBTOR’S MOTION FOR ENTRY OF AN ORDER

APPOINTING A LEGAL REPRESENTATIVE FOR FUTURE CLAIMANTS

The above-captioned debtor and debtor in possession (the “Debtor”), through undersigned counsel, hereby moves the Court for the entry of an order, pursuant to

sections 105(a) and 1109(b) of title 11 of the United States Code (the “Bankruptcy Code”), in substantially the form attached as Exhibit A (the “Proposed Order”), appointing a future claims representative (the “FCR”) as the legal representative for holders of future Sexual Abuse Claims

1

The Debtor in this chapter 11 case is The Roman Catholic Diocese of Rockville Centre, New York, the last

four digits of its federal tax identification number are 7437, and its mailing address is 50 North Park Avenue P.O. Box

9023, Rockville Centre, NY 11571-9023.

(5)

-2-

(as defined in the Bar Date Order)

2

in the Debtor’s chapter 11 case. In support of this motion, the Debtor respectfully represents as follows:

JURISDICTION AND VENUE

1. This Court has subject matter jurisdiction to consider this matter pursuant to 28 U.S.C. §§ 157 and 1334. This is a core proceeding pursuant to 28 U.S.C. § 157(b). Venue is proper before this Court pursuant to 28 U.S.C. §§ 1408 and 1409.

BACKGROUND

2. On October 1, 2020 (the “Petition Date”), the Debtor filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code. The Debtor continues to operate and pursue its religious, non-profit mission and ministry, and manage its properties and affairs as a debtor in possession under sections 1107(a) and 1108 of the Bankruptcy Code. On October 16, 2020, the U.S. Trustee appointed an official committee of unsecured creditors of the Debtor

(the “Committee”). No trustee or examiner has been appointed in this case.

3. The Debtor is the seat of the Roman Catholic Church on Long Island. The State of New York established the Debtor as a religious corporation in 1958. See 1958 N.Y. SESS.

LAWS Ch. 70 (1958), § 1. The Debtor is one of eight Catholic dioceses in New York and is the eighth-largest diocese in the United States when measured by the number of baptized Catholics.

The Debtor’s total Catholic population is approximately 1.4 million, which constitutes roughly

2

Under the Order Establishing Deadlines For Filing Proofs of Claim and Approving the Form and Manner of

Notice Thereof [Docket No. 333] (the “Bar Date Order”), a “Sexual Abuse Claim” is defined as any claim (as defined

in section 101(5) of the Bankruptcy Code) against the Debtor resulting or arising in whole or in part, directly or

indirectly from any actual or alleged sexual conduct or misconduct, sexual abuse or molestation, indecent assault

and/or battery, rape, pedophilia, ephebophilia, or sexually-related physical, psychological, or emotional harm, or

contacts, or interactions of a sexual nature between a child and an adult, or a nonconsenting adult and another adult,

sexual assault, sexual battery, sexual psychological or emotional abuse, humiliation, or intimidation, or any other

conduct constituting a sexual offense, incest, or use of a child in a sexual performance (as such terms are defined in

the New York Penal Law), and seeking monetary damages or any other relief, under any theory of liability, including

vicarious liability, any negligence-based theory, contribution, indemnity, or any other theory based on any acts or

failures to act by the Diocese or any other person or entity for whose acts or failures to act the Diocese is or was

allegedly responsible.

(6)

-3-

half of Long Island’s total population of 3.0 million. Pursuit of the Debtor’s mission depends upon the continuing financial support provided by the faithful in anticipation of, and in mutual support of, the Debtor’s religious and charitable mission.

4. To carry out its Catholic mission, the Debtor works closely with its 135 parishes.

Parishes play a central role in the lives of Catholics by administering key aspects of the Catholic Faith, including: baptism, education, communion, Mass, confirmation, marriage, and

bereavement, including last rites, funeral services and grief support. None of the parishes are debtors herein. In addition, the Debtor supports separate charitable organizations to further its pursuit of the Catholic mission to serve the poor, the hungry, those in need, and those that cannot help themselves. None of those entities are debtors herein. The Debtor is also continuing its outreach to comfort, educate, and enlighten the faithful, especially in these times of quarantine and isolation due to COVID-19 protocols and precautions.

5. Following the enactment in 2019 of the Child Victims Act (the “CVA”), which revived what had been time-barred claims, approximately 200 prepetition lawsuits were brought by abuse claimants against the Debtor. In its effort to fairly and equitably address this tragic legacy, the Debtor has undertaken a substantial effort to identify and marshal over 60 years of insurance policies, including both primary and excess coverage, with the goal of securing a valuable resource of the Debtor, its parishes, and its affiliates, so that it can be used for the care and compensation of abuse survivors. The Debtor has made such insurance policies and related information, together with historical financial information for itself and its charitable,

educational, and service affiliates, available to counsel for the abuse claimants and the Debtor’s

insurers.

(7)

-4-

6. Additional information regarding the Debtor, its mission and operations, and the events and circumstances preceding the Petition Date is set forth in the Declaration of Charles Moore, Managing Director of Alvarez & Marsal North America, LLC, Proposed Restructuring Advisor to the Roman Catholic Diocese of Rockville Centre, New York, in Support of Chapter 11 Petition and First Day Pleadings (the “First Day Declaration”) filed on the Petition Date.

RELIEF REQUESTED

7. By this motion, the Debtor requests entry of an order, substantially in the form of the Proposed Order, appointing Robert E. Gerber to represent individuals that may hold a Sexual Abuse Claim based on sexual abuse that occurred prior to the Petition Date, but who, as of the Sexual Abuse Bar Date (as defined in the Bar Date Order, as amended), had not filed a proof of claim against the Debtor and who have a valid legal excuse for not doing so (the “Future

Claimants”).

3

In the sexual abuse context, a future claim may arguably include a claim related to abuse that has already occurred but which is held by an individual who (a) has not attained 18 years of age as of the Sexual Abuse Bar Date, (b) is under a disability because of “insanity” as that term is used in N.Y. C.P.L.R. § 208(B), (c) suffers from “repressed memory” such that he or she is not aware that he or she holds an abuse claim, or (d) has not discovered the injury or the connection between the injury and the abuse and who could not in the exercise of reasonable care have discovered the injury or connection between the injury and the abuse.

4

Given the

significant advertising and publicity surrounding abuse claims with respect to the Catholic Church, the highly publicized nature of this restructuring and the robust and comprehensive

3

The foregoing definition of Future Claimants is without prejudice to the right of any party in interest to file a motion seeking entry of an order modifying the definition of Future Claimants, or for the Court to modify such definition in connection with confirming a plan of reorganization for the Debtor.

4

For the avoidance of doubt, the Debtor does not admit, for the purposes of this Motion or for any other purposes

in this chapter 11 case, that any Future Claimants exist, and all rights, defenses, and objections any party may have

regarding liability with respect to claims asserted by any Future Claimants or potential Future Claimants are reserved.

(8)

-5-

claims and noticing procedures implemented by the Bar Date Order, the Debtor expects that the vast majority of, if not all, claimants have been identified as part of the bar date process in this chapter 11 case. The Debtor does not expect that there will be significant future claims relating to prior abuse alleged against the Diocese. Nevertheless, it is important to the Debtor’s

restructuring efforts that the interests of any Future Claimants be adequately represented throughout this chapter 11 case.

8. The Debtor requests that the FCR be granted the following rights in this chapter 11 case:

a. Appointment. The FCR will be appointed to represent and protect the rights of Future Claimants. The FCR will have no other obligations except those that may be prescribed by orders of the Court and accepted by the FCR;

b. Standing: The FCR shall have standing under section 1109(b) of the Bankruptcy Code to be heard as a party-in-interest in all matters relating to the Debtor’s chapter 11 case and shall have such powers and duties of a committee, as set forth in section 1103 of the Bankruptcy Code, as are appropriate for a FCR;

c. Right to Receive Notices: The FCR and professionals, if any, retained by the FCR and approved by the Court shall have the right to receive all notices and pleadings that are required to be served upon any statutory committee and its counsel pursuant to applicable law or an order of the Court;

d. Engagement of Professionals: The FCR may, with prior approval from the Court pursuant to sections 105(a) and 1103 of the Bankruptcy Code and consistent with the treatment afforded other professionals in this Chapter 11 Case, retain attorneys and other professionals;

e. Compensation: The FCR shall apply for compensation in

accordance with the Bankruptcy Code, the Local Rules of

Bankruptcy Practice and Procedure of the United States Bankruptcy

Court of the Southern District of New York, and any order entered

by the Court establishing procedures for interim compensation and

reimbursement of expenses of professionals. Subject to Court

approval, the FCR shall be compensated at his/her ordinary hourly

(9)

-6-

rate, subject to periodic adjustment, plus reimbursement of reasonable expenses;

f. Liability Insurance. The FCR will be covered by his/her own firm’s liability insurance without any additional cost to the Debtor’s estate.

g. Limitation of Liability. The FCR will not be liable for any damages, or have any obligation other than as prescribed by order of the Court;

provided, however, that the FCR may be liable for damages caused by willful misconduct or gross negligence. The FCR will not be liable to any person as a result of any action or omission taken or made in good faith.

h. Indemnification. The estate will indemnify, defend, and hold harmless the FCR, his/her partners, associates, principals, employees, and professionals (collectively, the “Indemnified Parties”

and each, individually, an “Indemnified Party”) from and against any losses, claims, damages, or liabilities (or actions in respect thereof) to which any Indemnified Party may become subject as a result of or in connection with the FCR’s rendering of services in his/her capacity as the FCR, unless and until it is finally judicially determined that such losses, claims, damages, or liabilities were caused by gross negligence, willful misconduct, bad faith, or fraud on the part of one or more of the Indemnified Parties in performing their obligations. Any such indemnification will be an allowed administrative expense under section 503(b) of the Bankruptcy Code. For the avoidance of doubt, gross negligence, willful misconduct, bad faith, or fraud on the part of one Indemnified Party will not preclude indemnification for the other Indemnified Parties.

If, before the earlier of (i) the effective date of a plan confirmed in

this chapter 11 case and (ii) the entry of an order closing this chapter

11 case, an Indemnified Party believes that he, she, or it is entitled

to payment of any amount by the estate on account of the estate’s

obligations to indemnify, defend, and hold harmless as set forth

herein, including, without limitation, the advancement of defense

costs, the Indemnified Party must file an application for such

amounts with the Court, and the estate may not pay any such

amounts to the Indemnified Party before the entry of an order by the

Court authorizing such payments. The preceding sentence is

intended to specify the period of time during which the Court has

jurisdiction over the estate’s obligations to indemnify, defend, and

hold harmless as set forth herein, and is not a limitation on the

duration of the estate’s obligation to indemnify any Indemnified

Party. In the event that a cause of action is asserted against any

Indemnified Party as a result of or in connection with the FCR’s

(10)

-7-

rendering services in his/her capacity as the FCR, the Indemnified Party shall have the right to choose his, her, or its own counsel.

i. Termination of Appointment. Unless otherwise ordered by the Court or provided for in any confirmed plan of reorganization, the FCR’s appointment will terminate upon the effective date of a plan of reorganization in this chapter 11 case or otherwise by written resignation or incapacity to serve.

9. The Debtor submits that the proposed terms of the FCR’s employment are consistent with the terms typically approved by bankruptcy courts for such appointments.

BASIS FOR RELIEF REQUESTED

A. A Future Claimants’ Representative is Appropriate and Necessary to Achieve The Goals of This Restructuring

10. The Bankruptcy Code broadly defines a “claim” as “(A) right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured; or (B) right to an equitable remedy for breach of performance if such breach gives rise to a right of payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured.” 11 U.S.C. § 101(5). Simply stated, a claim is “(1) a right to payment (2) that arose before the filing of the petition.” Elliott v.

General Motors LLC (In re Motors Liquidation Co.), 829 F.3d 135, 156 (2d Cir. 2016). Any claims against the Debtor based upon a Sexual Abuse Claim that occurred prior to the Petition Date are pre-petition claims that will ultimately need to be addressed through the Debtor’s plan of reorganization.

11. The Sexual Abuse Bar Date (as defined in the Bar Date Order) was August 14,

2021. As described in further detail in the Bar Date Order, the Debtor used robust noticing

procedures to provide notice of the deadline for filing Sexual Abuse Claims against the Debtor to

known and unknown holders of Sexual Abuse Claims. The Debtor encouraged individuals to

(11)

-8-

submit proofs of claims prior to the Sexual Abuse Bar Date in accordance with the procedures in the Bar Date Order. The Debtor recognizes, however, that there may be a subset of holders of Sexual Abuse Claims that assert that they were unable to assert such Sexual Abuse Claims by the Sexual Abuse Bar Date. As other courts have acknowledged, sexual abuse can cause “cognitive and psychological injuries” that impede a survivor’s ability to recognize the abuse and its effects.

See In re Roman Catholic Archbishop of Portland in Or., Case No. 04-37154, 2005 WL 148775, at *4 (Bankr. D. Or. Jan. 10, 2005). As a result, the Debtor requests that the Court appoint a FCR to represent the interests of Future Claimants, if any, in connection with this chapter 11 case, including the negotiations regarding the plan of reorganization.

12. Under section 1109(b) of the Bankruptcy Code, a bankruptcy court may appoint a representative to protect the interests of future tort claimants as “part[ies] in interest.” See Fogel v. Zwell, 221 F.3d 955, 961–62 (7th Cir. 2000) (collecting cases); see also Jones v. Chemetron Corp., 212 F.3d 199, 209–10 (3d Cir. 2000) (recognizing that future claimants “may require some voice” in the reorganization process and therefore qualify as “parties in interest” under section 1109(b)); In re Johns-Manville Corp., 36 B.R. 743, 749 (Bankr. S.D.N.Y. 1984) (“Future claimants are undeniably parties in interest to these reorganization proceedings pursuant to the broad, flexible definition of that term . . . . The drafting of ‘party in interest’ as an elastic concept was designed for just this kind of situation.”). Thus, “due process considerations are often addressed by the appointment of a representative to receive notice for and represent the interests of a group of unknown creditors.” Chemetron Corp., 212 F.3d at 209.

13. What is more, the interests of the parties that have asserted Sexual Abuse Claims

against the Debtor by the Sexual Abuse Bar Date may not be aligned in all respects with those of

Future Claimants. It is therefore appropriate for the Court to appoint a separate representative

(12)

-9-

and advocate for the interests of Future Claimants, if any. See In re Amatex Corp., 755 F.2d 1034, 1042–43 (3d Cir. 1985) (“[N]one of the parties currently involved in the reorganization proceedings have interests similar to those of future claimants, and therefore future claimants require their own spokesperson.”); In re Johns-Manville Corp., 552 B.R. 221, 245 (Bankr.

S.D.N.Y. 2016) (citation omitted) (explaining that the future claimants’ representative was appointed to avoid “a conflict of interest between future asbestos claimants and present asbestos health claimants”); In re UNR Indus., Inc., 46 B.R. 671, 675 (Bankr. N.D. Ill. 1985) (recognizing that the interests of future claimants were not adequately represented by the debtors or by the official committees of unsecured creditors).

14. Courts addressing bankruptcy cases involving significant numbers of sexual abuse claims often appoint future claimants’ representatives to represent claimants that are unable to identify their injury at the time of the bankruptcy case. See, e.g., In re Boy Scouts of Am., No.

20-10343 (Bankr. D. Del. Apr. 24, 2020) Dkt. No. 486 (appointing legal representative for future abuse claimants); In re Archbishop of Agaña, Case No. 19-00010 (D. Guam Mar. 3, 2020), Dkt.

No. 355 (appointing unknown claimants’ representative); In re USA Gymnastics, Case No. 18- 09108 (Bankr. S.D. Ind. 2019), Dkt. No. 516 (appointing representative to represent future abuse claimants); In re Roman Catholic Bishop of Great Falls, Montana, Case No. 17-60271 (Bankr.

D. Mont. June 18, 2018), Dkt. No. 383 (same); In re Christian Brothers’ Inst., No. 11-22820 (Bankr. S.D.N.Y. Apr. 21, 2014), Dkt. No. 688 (appointing future claimants’ representative post- confirmation to administer trust to settle sexual abuse claims); In re Catholic Bishop of Northern Alaska, No. 08-00110 (Bankr. D. Alaska May 30, 2008), Dkt. No. 179 (appointing future

claimants’ representative on behalf of potential sexual abuse claimants).

(13)

-10-

B. The Breadth of the FCR’s Experience and Independence Will Best Serve the Interests of Future Claimants and This Case

15. The Debtor submits that Mr. Gerber is an independent and particularly well- qualified candidate to represent Future Claimants. Mr. Gerber has broad experience in financial reorganizations and disputes. Mr. Gerber returned to private practice in 2016 upon his retirement from the federal bench, having served, for 15 years, as a United States Bankruptcy Judge in the Southern District of New York. During his tenure as a federal bankruptcy judge, he presided over a wide variety of complex cases—with 10 cases with over $1 billion in debt and many more with over $100 million in debt—including PSINet, Ames Department Stores, Global Crossing, Adelphia, ABIZ, Basis Yield Alpha Fund, Lyondell Chemical, BearingPoint, DBSD North

America, Chemtura, Pinnacle Airlines, Houghton-Mifflin Harcourt and General Motors. He was named as one of the nation’s outstanding bankruptcy judges six times. Judge Gerber was

originally appointed to the bench in 2000; reappointed in 2014; and appointed for “recall”—akin to “Senior Judge” Status—in 2015. Over the course of that time, he issued about 200 published opinions, principally in the business bankruptcy and corporate governance areas.

16. The Debtor further submits that Mr. Gerber’s broad-based experience and independence sets him apart from other potential candidates and makes him particularly well- positioned to represent the interests of Future Claimants. Mr. Gerber has not previously

represented any party—plaintiff or defendant—in sexual abuse litigation in the tort system. Mr.

Gerber has also not chosen to make mass tort bankruptcy cases a centerpiece of his practice. Mr.

Gerber is not, directly or indirectly, beholden to the mass tort plaintiff law firm industry or any

other party in interest or professional in this case. As a result, the Debtor does not foresee any

risk or concern that Mr. Gerber’s representation of Future Claimants might be jeopardized by (a)

the facts and circumstances of any other case or (b) any reliance or expectation that he may be

(14)

-11-

appointed as a future claimants’ representative, or any other role, in subsequent cases, pre- or post-confirmation. Rather, the Debtor anticipates that the FCR’s undivided focus will be on representing vigorously the interests of the Future Claimants in this case, recognizing that those interests, at times, may be adverse to the Debtor.

17. The Debtor believes that Mr. Gerber’s many years of experience and involvement in a substantial number of large and complex cases make him highly qualified to represent the interests of the Future Claimants. For these reasons, the Debtor believes that the appointment of Mr. Gerber as the FCR will be not only in the best interests of Future Claimants, but will be in the best interests of all parties in this chapter 11 case.

NOTICE

18. The Debtor will provide notice of this Application to: (a) the Office of the United States Trustee for Region 2; (b) the Official Committee for Unsecured Creditors; (c) and all parties entitled to notice pursuant to Bankruptcy Rule 2002. The Debtor submits that, in light of the nature of the relief requested, no other or further notice need be given.

NO PRIOR REQUEST

19. No prior request for the relief sought herein has been made to this Court or any other court.

WHEREFORE, the Debtor respectfully requests that the Court enter the Proposed Order

and grant such other and further relief as may be appropriate.

(15)

-12- Dated: September 30, 2021

New York, New York Respectfully submitted, /s/ Corinne Ball

Corinne Ball Todd Geremia

Benjamin Rosenblum Andrew Butler JONES DAY 250 Vesey Street

New York, NY 10281-1047 Telephone: (212) 326-3939 Facsimile: (212) 755-7306 Email: [email protected]

[email protected] [email protected] [email protected] Counsel for the Debtor and

Debtor in Possession

(16)

EXHIBIT A

(PROPOSED ORDER)

(17)

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK

In re:

THE ROMAN CATHOLIC DIOCESE OF ROCKVILLE CENTRE, NEW YORK,

Debtor.

: : : : : : :

Chapter 11

Case No. 20-12345 (SCC)

ORDER APPOINTING A LEGAL REPRESENTATIVE FOR FUTURE CLAIMANTS This Court has considered the Debtor’s Motion for Entry of an Order Appointing a Legal Representative for Future Claimants (the “Motion”),

1

and the statements of counsel and the evidence adduced with respect to the Motion at any hearing before this Court (the “Hearing”).

This Court has found that (a) this Court has jurisdiction over this matter pursuant to 28 U.S.C. §§

157 and 1334 and the Amended Standing Order, (b) venue is proper in this district pursuant to 28 U.S.C. §§ 1408 and 1409, (c) notice of the Motion and any Hearing was sufficient under the circumstances, and (d) the FCR does not hold or represent any interest materially adverse to the Debtor’s estate. After due deliberation, this Court has determined that the relief requested in the Application is in the best interests of the Debtor, its estate and its creditors;

ACCORDINGLY, IT IS HEREBY ORDERED THAT:

1. The Motion is GRANTED as set forth herein.

2. All objections to the entry of this Order, to the extent not withdrawn or settled, are overruled.

3. Robert E. Gerber is hereby appointed as the legal representative of Future Claimants.

1

Capitalized terms not otherwise defined herein shall have the meanings given to them in the Motion.

(18)

-2-

4. Future Claimants represented by the FCR are limited to individuals that may hold a Sexual Abuse Claim based on sexual abuse that occurred prior to the Petition Date, but who, as of the Sexual Abuse Bar Date (as defined in the Order Establishing Deadlines For Filing Proofs of Claim and Approving the Form and Manner of Notice Thereof, as amended), had not filed a proof of claim against the Debtor and who have a valid legal excuse for not doing so (the “Future Claimants”).

5. The foregoing definition of “Future Claimants” is without prejudice to the right of any party in interest to file a motion seeking entry of an order modifying the definition of Future Claimants, or for the Court to modify such definition in connection with confirming a plan of reorganization for the Debtor.

6. The Future Claimants representative is appointed subject to the following terms and conditions:

a. Appointment. The FCR shall represent and protect the rights of Future Claimants. The FCR will have no other obligations except those that may be prescribed by orders of the Court and accepted by the FCR;

b. Standing: The FCR shall have standing under section 1109(b) of the Bankruptcy Code to be heard as a party-in-interest in all matters relating to the Debtor’s chapter 11 case and shall have such powers and duties of a committee, as set forth in section 1103 of the Bankruptcy Code, as are appropriate for a FCR;

c. Right to Receive Notices: The FCR and professionals retained by the FCR and approved by the Court shall have the right to receive all notices and pleadings that are required to be served upon any statutory committee and its counsel pursuant to applicable law or an order of the Court;

d. Engagement of Professionals: The FCR may, with prior approval

from the Court pursuant to sections 105(a) and 1103 of the

Bankruptcy Code and consistent with the treatment afforded other

professionals in this Chapter 11 Case, retain attorneys and other

professionals;

(19)

-3-

e. Compensation: The FCR shall apply for compensation in accordance with the Bankruptcy Code, the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court of the Southern District of New York, and any order entered by the Court establishing procedures for interim compensation and reimbursement of expenses of professionals. Subject to Court approval, the FCR shall be compensated at his/her ordinary hourly rate, subject to periodic adjustment, plus reimbursement of reasonable expenses;

f. Liability Insurance. The FCR will be covered by his/her own firm's liability insurance without any additional cost to the Debtor’s estate;

g. Limitation of Liability. The FCR will not be liable for any damages, or have any obligation other than as prescribed by order of the Court;

provided, however, that the FCR may be liable for damages caused by willful misconduct or gross negligence. The FCR will not be liable to any person as a result of any action or omission taken or made in good faith;

j. Indemnification. The estate will indemnify, defend, and hold harmless the FCR, his/her partners, associates, principals, employees, and professionals (collectively, the “Indemnified Parties”

and each, individually, an “Indemnified Party”) from and against any losses, claims, damages, or liabilities (or actions in respect thereof) to which any Indemnified Party may become subject as a result of or in connection with the FCR’s rendering of services in his/her capacity as the FCR, unless and until it is finally judicially determined that such losses, claims, damages, or liabilities were caused by gross negligence, willful misconduct, bad faith, or fraud on the part of one or more of the Indemnified Parties in performing their obligations. Any such indemnification will be an allowed administrative expense under section 503(b) of the Bankruptcy Code. For the avoidance of doubt, gross negligence, willful misconduct, bad faith, or fraud on the part of one Indemnified Party will not preclude indemnification for the other Indemnified Parties.

If, before the earlier of (i) the effective date of a plan confirmed in

this chapter 11 case and (ii) the entry of an order closing this chapter

11 case, an Indemnified Party believes that he, she, or it is entitled

to payment of any amount by the estate on account of the estate’s

obligations to indemnify, defend, and hold harmless as set forth

herein, including, without limitation, the advancement of defense

costs, the Indemnified Party must file an application for such

amounts with the Court, and the estate may not pay any such

amounts to the Indemnified Party before the entry of an order by the

(20)

-4-

Court authorizing such payments. The preceding sentence is intended to specify the period of time during which the Court has jurisdiction over the estate’s obligations to indemnify, defend, and hold harmless as set forth herein, and is not a limitation on the duration of the estate’s obligation to indemnify any Indemnified Party. In the event that a cause of action is asserted against any Indemnified Party as a result of or in connection with the FCR’s rendering services in his/her capacity as the FCR, the Indemnified Party shall have the right to choose his, her, or its own counsel; and h. Termination of Appointment. Unless otherwise ordered by the

Court or provided for in any confirmed plan of reorganization, the FCR’s appointment will terminate upon the effective date of a plan of reorganization in this chapter 11 case or otherwise by written resignation or incapacity to serve.

7. Nothing herein shall be construed as an admission by the Debtor, for the purposes of this Motion or for any other purposes in this chapter 11 case, that any Future Claimants exist, and all rights, defenses, and objections any party may have regarding liability with respect to claims asserted by any Future Claimants or potential Future Claimants are hereby reserved.

8. The Debtor is authorized to take all actions necessary to effectuate the relief granted pursuant to this Order in accordance with the Motion.

9. This Order shall be immediately effective and enforceable upon its entry.

10. This Court shall retain jurisdiction to hear and determine all matters arising from or related to the interpretation, implementation and/or enforcement of this Order.

Dated: ____, 2021

New York, New York UNITED STATES BANKRUPTCY JUDGE

References

Related documents

By this Motion, and pursuant to sections 105(a) and 365 of chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) and Bankruptcy Rules 6004, 6006, 9013, and

Limited (Singapore), Smart Group Limited (Cayman), Super Investment Limited (Cayman), Pacific Andes Resources Development Limited (Bermuda), Nouvelle Foods International Ltd.,

and Oliver Wyman Services Limited as Strategic Advisor (the “First Supplemental Declaration” 2 and together with the Initial Declaration, the “Prior Declarations”) and attached

FELIPE SERRANO COLOMBIAN COMPETITON, REGULATORY, AND AVIATION COUNSEL EDIFICIO AVANTE, SUITE 5-01. BLVD LUIS POMA, SANTA

as Investment Advisor for CMFG Life Insurance Company; Zephyrus Capital Aviation Partners 2018-1 Ltd; Woori Bank, Tokyo Branch; Siemens Financial Services Inc.; MUFG Bank, Ltd.;

Jefferies LLC (“Jefferies”), the investment banker for the official committee of unsecured creditors (the “Committee”) in the chapter 11 cases of the above-captioned debtors

Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), the ad hoc group (the “Ad Hoc Group”) composed of certain

Compensation Order”), Kurtzman Carson Consultants LLC (“KCC”) hereby submits this monthly statement (the “Monthly Fee Statement”), seeking compensation for services