May 3—MONTVILLE — Friday's scheduled auction of St. Bernard School has been postponed as the parties involved in the Diocese of Norwich bankruptcy case continue to discuss the sale procedure.
At a April 13 hearing, Attorney Stephen M. Kindseth who represents the Official Committee of Unsecured Creditors, told Judge James Tancredi that the two sides have had "very productive conversations" as they work to reach an agreement on the sale procedure, but needed more time to do so.
The committee represents creditors including more than 140 people who says they were sexually assaulted by diocesan priests and staff.
An April 5 court filing outlined a proposed sale agreement that would allow qualified bidders to submit offers of no less than $6.5 million by May 1 for the school, with the sale auction initially scheduled for Friday.
Kindseth said Wednesday that attorneys will meet with Tancredi on Friday for a status conference during which a new auction date may be set if the two sides have reached an agreement.
Conditions of the sale, as filed on April 5, call for the winning bidder to enter into a 10-year lease with the school to allow it to stay open. The school would pay $1 a year, per the agreement. The lease has the potential to be automatically extended for another 10-year period.
The Roman Catholic Diocese of Norwich announced in January its plan to sell St. Bernard School and the 113 acres of land it sits on to help fund its proposed bankruptcy plan.
The 67-year-old Catholic school at 1593 Norwich-New London Turnpike in the Uncasville section of town serves 400 students from across the region in grades six through 12. The property has been appraised by the Town of Montville at $21 million.
There are two known potential buyers for the property: Saints Country, LLC and Thames River Acquisitions, LLC.
A group of about 10 alumni came together in January to form Saints Country, LLC. The group found out in February that it was the recommended buyer for the property with its $6.2 million offer.
The undisclosed owner of Thames River Acquisitions LLC signaled its intent to bid $6.5 million in February. The limited liability company was incorporated in December, according to the Secretary of the State's database.
Thames River Acquisitions, LLC first offered to pay $6 million for the property along with provisions for the multi-year lease in September, before increasing its offer after Saints Country, LLC entered the picture.