Creditors, Ogdensburg Diocese Defend Mediator Pick Against Insurers

The Roman Catholic Diocese of Ogdensburg’s unsecured creditors are opposing a bid from insurers—including Allianz SE and Chubb Ltd. units—to rule out former bankruptcy judge Melanie Cyganowski as a potential mediator in the Chapter 11 case brought by the New York diocese to resolve sex abuse claims.

The official committee of unsecured creditors supports Cyganowski’s appointment as a second mediator based on her “recent successes” negotiating settlements with insurers in another bankrupt diocese case, according to a Wednesday filing in the US Bankruptcy Court for the Northern District of New York.

The diocese and the committee defended Cyganowski’s pick after ...