Law.com and The Philadelphia Inquirer report on the rejection by the Official Committee of Tort Claimant Creditors in the Chapter 11 bankruptcy case of the Diocese of Camden, New Jersey, of a proposed bankruptcy reorganization plan that Jeffrey D. Prol calls “patently unfair.” Prol, Vice Chair of Lowenstein’s Bankruptcy & Restructuring Department, continues: “I think it stinks. Based on the extreme trauma suffered by the claimants, if their cases were going to trial in the state court system, some of them would be valued at $10 million each.”

Lynda A. Bennett, Chair of the firm’s Insurance Recovery group, calls the offer “woefully inadequate,” adding that the Committee is “not interested at all” in agreeing to $40 million in payments spread out over time. Bennett says, “The diocese is trying to improperly lowball the value of these claims.”

Prol continues: “We conducted an investigation and we uncovered assets, liquid assets and cash and investments, in excess of $250 million. The parishes own a lot of real estate, as does the diocese. To propose to release itself and all the other entities from liability for $26 million when they have assets approaching $1 billion is patently unfair. We will be opposing that plan.”

In Law360, Michael A. Kaplan, partner in the firm’s White Collar Criminal Defense group,  addresses the Committee’s intention to file fraudulent transfer claims against the Diocese with regard to the write-off of more than $52 million in loans to parishes and schools, calling it anotherexample of the diocese's lack of financial transparency and diligence.”