The Diocese of Buffalo Bankruptcy: Preliminary Injunction Insights

The Diocese of Buffalo's Chapter 11 bankruptcy involved hundreds of state-court sexual-abuse claims against the Diocese and affiliated entities. The Diocese sought a broader injunction to pause litigation while it pursued mediation and developed a potential reorganization and survivor-trust structure.

The bankruptcy court considered the relationship between the automatic stay, insurance assets, affiliated parishes, and the authority to issue relief under 11 U.S.C. § 105(a). In light of uncertainty surrounding the Supreme Court's pending Purdue Pharma decision, the court granted temporary injunctive relief for a limited period. The matter illustrates the difficult balance between bankruptcy administration, creditor rights, insurance interests, and global settlement efforts.

Original article:https://www.whitcomblawpc.com/business-law-blog/the-diocese-of-buffalo-bankruptcy-preliminary-injunction-insights