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UNITED STATES BANKRUPTCY COURT
DISTRICT OF MINNESOTA

Diocese of Winona-Rochester
Chapter 11 Reorganization Proceeding
(Case No. 18-33707)

NOTICE OF HEARING AND OBJECTION DEADLINE FOR MOTION TO APPROVE

THE SETTLEMENT WITH SETTLING INSURERS

PLEASE TAKE NOTICE that the Diocese of Winona-Rochester (“Diocese”), the Debtor in the captioned bankruptcy proceeding, case number 18-33707, in the United States Bankruptcy Court for the District of Minnesota (“Court”) and the Official Committee of Unsecured Creditors (“UCC”) filed a joint chapter 11 plan of reorganization [Docket No. 316] (“Plan”) and a disclosure statement for the Plan [Docket No. 317] (“Disclosure Statement”) under Section 1125 of the United States Bankruptcy Code (“Bankruptcy Code”). On July 16, 2021, the Bankruptcy Court approved the Disclosure Statement.

PLEASE TAKE FURTHER NOTICE that the Diocese has entered into a Settlement Agreement and Release (“Agreement”) pursuant to 11 U.S.C. §§ 105(a), 363, & 365 and Fed. R. Bankr. P. 2002(l), 6004(c), and 9019(a) with Interstate Fire & Casualty Company, National Surety Corporation, and London Market Insurers (“Settling Insurers”), and on August 17, 2021, filed in the Court a motion to approve the Agreement (“Motion”). [Docket No. 339]. If the Motion and the Plan are approved, the Diocese will (a) sell, and the Settling Insurers will purchase, certain insurance policies and certificates issued to, or subscribed on behalf of or allegedly issued to or subscribed on behalf of, the Diocese (“Subject Insurance Policies”), by the Settling Insurers, as described more particularly in the Agreement, free and clear of all liens, claims, encumbrances, and other interests, and (b) fully release any all claims against the Settling Insurers and certain related entities under or relating to the Subject Insurance Policies, including extra-contractual claims. In addition, there are other provisions in the Agreement than those set forth in the preceding sentence, which should be reviewed to understand completely the Agreement and its effect on your rights.

IF THE MOTION IS APPROVED, FOR THE AGREEMENT TO BE EFFECTIVE, THE PLAN MUST ALSO BE APPROVED AND PROVIDE FOR THE ENTRY OF AN INJUNCTION, PERMANENTLY BARRING ALL ENJOINED CLAIMS (AS DEFINED IN THE AGREEMENT), BY ANY PERSON OR ENTITY AGAINST THE SETTLING INSURERS AND CERTAIN RELATED ENTITIES; INCLUDING COMMENCING OR CONTINUING AN ACTION AGAINST THE SETTLING INSURERS; ENFORCING A JUDGMENT OR ORDER AGAINST THE SETTLING INSURERS; CREATING OR PERFECTING LIENS OF ANY KIND AGAINST THE SETTLING INSURERS; AND ASSERTING OR ACCOMPLISHING ANY SETOFF, RIGHT OF INDEMNITY, OR RIGHT OF CONTRIBUTION AGAINST THE SETTLING INSURERS. FURTHER, THE AGREEMENT SPECIFIES THAT THE PLAN MUST INCLUDE AN INJUNCTION CHANNELING ALL THE CHANNELED CLAIMS (AS DEFINED IN THE AGREEMENT) TO A TRUST, TO BE ESTABLISHED BY THE PLAN, WHICH WILL ADMINISTER AND RESOLVE THE CHANNELED CLAIMS, AND THE HOLDERS OF ALL SUCH CLAIMS WOULD BE BARRED FROM TAKING ANY ACTION AGAINST THE PROTECTED PARTIES OR SETTLING INSURERS, INCLUDING COMMENCING OR CONTINUING AN ACTION WITH RESPECT TO ANY CHANNELED CLAIM; ENFORCING A JUDGMENT OR ORDER AGAINST THE PROTECTED PARTIES OR SETTLING INSURERS WITH RESPECT TO ANY CHANNELED CLAIM; CREATING OR PERFECTING LIENS OF ANY KIND RELATING TO ANY CHANNELED CLAIM; AND ASSERTING OR IMPLEMENTING ANY CHANNELED CLAIM AGAINST ANY OF THE PROTECTED PARTIES OR SETTLING INSURERS.

Copies of the Plan, Disclosure Statement and Motion are on file with the Court, 200 Warren E. Burger Federal Building and United States Courthouse, 316 North Robert Street, St. Paul, MN 55101. Copies of the Plan, Disclosure Statement, and Motion may be obtained by (a) contacting the Diocese’s counsel by mail, telephone or email at Bodman PLC, Attn: Robert J. Diehl, Jr., 6 th Floor at Ford Field, 1901 St. Antoine Street, Detroit, MI 48226, Tel.: 313-259-7777, Email: rdiehl@bodmanlaw.com; (b) visiting the Diocese’s website at https://www.dowr.org; or (c) visiting the website of United States Bankruptcy Court for the District of Minnesota at https://www.mnb.uscourts.gov. A PACER login and password are required to access documents on the Bankruptcy Court’s website and these can be obtained through the PACER Service Center at www.pacer.psc.uscourts.gov.

PLEASE TAKE FURTHER NOTICE that the hearing on the Motion will occur on [September 23, 2021, at 9:30 a.m.] before the Honorable William J. Fisher, United States Bankruptcy Judge, Courtroom 2A, 200 Warren E. Burger Federal Building and U.S. Courthouse, 316 North Robert Street, St. Paul, MN 55101. Any response or objection to the Motion must be filed and served by September 17, 2021. Any written response must reference case number 18-33707, state the specific legal and factual basis for the objection, be accompanied by a proof of service, and conform and be served in accordance with the Local Rules for the Bankruptcy Court for the District of Minnesota.

IF YOU HAVE A CLAIM AGAINST THE DIOCESE AS TO WHICH INSURANCE COVERAGE IS OR MAY BE AVAILABLE OR HAVE AN INTEREST IN ANY OF THE DIOCESE’S INSURANCE POLICIES OR CERTIFICATES, YOUR RIGHTS MAY BE