Case Information
*1 Filed & Entered
On Docket 05/15/2025 UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF VERMONT In re: Roman Catholic Diocese of Burlington, Case No.: 24-10205-HZC Vermont, Chapter 11 Case
Debtor. ORDER AUTHORIZING THE DEBTOR TO PAY CERTAIN ACCRUED AND OUTSTANDING PENSION, BENEFITS, AND RELATED AMOUNTS
FOR RETIRED PRIESTS IN THE ORDINARY COURSE
This matter came before the Court on the Emergency Motion for an Order (I) Authorizing the Debtor to Pay Accrued and Outstanding Prepetition Employee Compensation, Benefits, and Related Amounts and (II) Authorizing the Debtor to Maintain Existing Payroll Services (doc. # 8) (the (cid:179) Motion (cid:180) ) filed by Debtor on September 30, 2024. The Court granted interim relief on the Motion (docs. ## 70, 126, 181) and subsequently bifurcated the Motion at the request of Debtor (cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:56)(cid:81)(cid:86)(cid:72)(cid:70)(cid:88)(cid:85)(cid:72)(cid:71)(cid:3)(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:180)(cid:12)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:83)(cid:72)(cid:70)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:85)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3) final determination on payment of pension, benefits, and related amounts for certain retired priests in the ordinary course (doc. # 126). After additional hearings and briefing, Debtor and the Committee continued to disagree as to whether certain benefits and related amounts paid to credibly accused priests should be allowed. The Court extended the interim order and scheduled a hearing for May 13, 2025 to address the disagreement (doc. # 181).
The Court held the hearing on May 13, 2025 at which all parties appeared but no resolution was reached. What remains central to the disagreement is whether the pension funds at issue constitute property of the bankruptcy estate. At the May 13, 2025 hearing, Debtor and the Committee proposed to resolve the outstanding issue through an adversary proceeding seeking
Page 1 of 3 *2 declaratory judgment. The Court FINDS that an adversary proceeding is necessary to determine (cid:39)(cid:72)(cid:69)(cid:87)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:81)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:41)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:53)(cid:88)(cid:79)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:37)(cid:68)(cid:81)(cid:78)(cid:85)(cid:88)(cid:83)(cid:87)(cid:70)(cid:92)(cid:3)(cid:51)(cid:85)(cid:82)(cid:70)(cid:72)(cid:71)(cid:88)(cid:85)(cid:72)(cid:3)(cid:26)(cid:19)(cid:19)(cid:20)(cid:15)(cid:3) and it is appropriate to allow Debtor to continue to pay certain accrued and outstanding pension, benefits, and related amounts for retired priests, including but not limited to, those who have been (cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:69)(cid:79)(cid:92)(cid:3) (cid:68)(cid:70)(cid:70)(cid:88)(cid:86)(cid:72)(cid:71)(cid:15)(cid:3) (cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3) (cid:68)(cid:81)(cid:3) (cid:88)(cid:79)(cid:87)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:3) (cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3) (cid:82)(cid:73)(cid:3) (cid:39)(cid:72)(cid:69)(cid:87)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) pension funds through an adversary proceeding. Based upon the foregoing, it is HEREBY ORDERED that:
1. The Motion is GRANTED . 2. Debtor is authorized to continue administering the Benefits Plans, as described and defined in the Motion, in the ordinary course of business; (b) continue making all payments on account of such benefits; (c) continue to pay any claims and administrative fees related thereto; and (d) pay any and all such amounts to the extent they remain unpaid on the Petition Date subject to the limit set forth in 11 U.S.C. § 507(a)(4), for any retired priests.
3. Debtor shall maintain accurate records of all transfers and transactions relating to the Benefits Plans so that all postpetition transfers and transactions shall be adequately and promptly documented in its books and records, to the same extent by Debtor before the Petition Date.
4. The Banks are authorized to accept and honor all representations from Debtor regarding which checks, drafts, wires or ACH transfers should be honored or dishonored consistent with any order of this Court, whether such checks, drafts, wires or ACH transfers are dated prior to, on, or subsequent to the Petition Date; provided, however, that to the extent Debtor directs the Banks to dishonor any disbursements or the Banks inadvertently dishonor any disbursements, Debtor may issue replacement disbursements consistent with the orders of this Court. The Banks
2 *4 United States Bankruptcy Court District of Vermont In re: Case No. 24-10205-hzc Roman Catholic Diocese of Burlington, Ve Chapter 11
Debtor CERTIFICATE OF NOTICE District/off: 0210-2 User: admin Page 1 of 2 Date Rcvd: May 15, 2025 Form ID: pdf710 Total Noticed: 5 The following symbols are used throughout this certificate: Symbol Definition + Addresses marked '+' were corrected by inserting the ZIP, adding the last four digits to complete the zip +4, or replacing an incorrect ZIP. USPS
regulations require that automation-compatible mail display the correct ZIP. Notice by first class mail was sent to the following persons/entities by the Bankruptcy Noticing Center on May 17, 2025: Recip ID Recipient Name and Address db + Roman Catholic Diocese of Burlington, Vermont, 55 Joy Drive, South Burlington, VT 05403-6999 aty Gail S. Greenwood, Pachulski Sang Ziehl & Jones LLP, One Sansome Street, 34th Floor, San Francisco, CA 94104-4436 aty + James I. Stang, Pachulski Stang Ziehl & Jones LLP, 10100 Santa Monica Boulevard, 13th Floor, Los Angeles, CA 90067-4003 aty + Obuchowski Law Office, PO Box 60, Bethel, VT 05032-0060
TOTAL: 4
Notice by electronic transmission was sent to the following persons/entities by the Bankruptcy Noticing Center. Electronic transmission includes sending notices via email (Email/text and Email/PDF), and electronic data interchange (EDI). Electronic transmission is in Eastern Standard Time. Recip ID Notice Type: Email Address Date/Time Recipient Name and Address cr + Email/Text: bankruptcy@td.com
May 15 2025 19:39:00 TD Bank, N.A., 70 Gray Road, Falmouth, ME 04105 TOTAL: 1 BYPASSED RECIPIENTS The following addresses were not sent this bankruptcy notice due to an undeliverable address, *duplicate of an address listed above, *P duplicate of a preferred address, or ## out of date forwarding orders with USPS. Recip ID Bypass Reason Name and Address crcm Local Counsel to the Official Committee of Unsecur, c/o Paul A. Levine, Esq., Lemery Greisler LLC TOTAL: 1 Undeliverable, 0 Duplicate, 0 Out of date forwarding address
NOTICE CERTIFICATION I, Gustava Winters, declare under the penalty of perjury that I have sent the attached document to the above listed entities in the manner shown, and prepared the Certificate of Notice and that it is true and correct to the best of my information and belief. Meeting of Creditor Notices only (Official Form 309): Pursuant to Fed .R. Bank. P.2002(a)(1), a notice containing the complete Social Security Number (SSN) of the debtor(s) was furnished to all parties listed. This official court copy contains the redacted SSN as required by the bankruptcy rules and the Judiciary's privacy policies. Date: May 17, 2025 Signature: /s/Gustava Winters
CM/ECF NOTICE OF ELECTRONIC FILING The following persons/entities were sent notice through the court's CM/ECF electronic mail (Email) system on May 15, 2025 at the address(es) listed below: Name Email Address Andre Denis Bouffard
on behalf of Interested Party Vermont Catholic Community Foundation Inc. abouffard@drm.com, mbottino@drm.com *5 District/off: 0210-2 User: admin Page 2 of 2 Date Rcvd: May 15, 2025 Form ID: pdf710 Total Noticed: 5 Antonin Robbason
on behalf of Creditor TD Bank N.A. aizr@rsclaw.com, ccs@rsclaw.com;lcw@rsclaw.com;sem@rsclaw.com Brittany Mitchell Michael on behalf of Financial Advisor Berkeley Research Group LLC bmichael@pszjlaw.com Brittany Mitchell Michael on behalf of Creditor Committee Committee of Unsecured Creditors bmichael@pszjlaw.com Celeste E. Laramie on behalf of Creditor Survivor Creditors claramie@gravelshea.com Elizabeth A. Glynn on behalf of Creditor TD Bank N.A. eag@rsclaw.com, ccs@rsclaw.com Jeremy R. Fischer on behalf of Interested Party Rice Memorial High School jfischer@dwmlaw.com mveilleux@dwmlaw.com Jim Baillie on behalf of Debtor Roman Catholic Diocese of Burlington Vermont jbaillie@fredlaw.com Katherine Nixon on behalf of Debtor Roman Catholic Diocese of Burlington Vermont knixon@fredlaw.com, sstallings@fredlaw.com;docketing@fredlaw.com
Lisa M Penpraze on behalf of U.S. Trustee U S Trustee lisa.penpraze@usdoj.gov Paul A Levine on behalf of Creditor Committee Committee of Unsecured Creditors plevine@lemerygreisler.com phartl@lemerygreisler.com Paul A Levine on behalf of Creditor Committee Local Counsel to the Official Committee of Unsecured Creditors plevine@lemerygreisler.com phartl@lemerygreisler.com
Raymond J Obuchowski on behalf of Attorney Obuchowski Law Office ray@oeblaw.com marie@oeblaw.com Raymond J Obuchowski on behalf of Debtor Roman Catholic Diocese of Burlington Vermont ray@oeblaw.com, marie@oeblaw.com Robert S DiPalma on behalf of Financial Advisor Berkeley Research Group LLC rdipalma@pfclaw.com Samuel Andre on behalf of Debtor Roman Catholic Diocese of Burlington Vermont sandre@fredlaw.com Steven Robert Kinsella on behalf of Debtor Roman Catholic Diocese of Burlington Vermont skinsella@fredlaw.com, sstallings@fredlaw.com;docketing@fredlaw.com
U S Trustee ustpregion02.vt.ecf@usdoj.gov