Season chicken with salt & pepper on both sides.
In a large saute pan, heat olive oil over medium heat. Brown chicken on both sides. Remove the chicken from pan.
While chicken is browning, rough chop the peppers, carrots and onion. and season with salt and pepper.
After removing the chicken from the pan, add 1 tablespoon of butter and the veggies and cook for about five minutes over medium heat. Once the veggies have cooked down a bit, sprinkle them with 1 tablespoon of flour and gently mix.
After the flour has been mixed with the veggies, add 1 cup dry red wine and reduce the liquid by half.
Add the tomatoes and fill the tomato can up 1/4 of the way with water. Make sure to gently roll the water in the can to pick up any remaining tomato in the can. Add the water to the pan. Add the poultry seasoning and the bay leaf. Stir to combine.
Add the chicken back to the pan. Drop the heat to a high simmer, cover and cook the chicken about 45 -60 minutes, or until the chicken has cooked through and is no longer pink. If you want the sauce to thicken up some more, uncover the chicken the last 10-15 minutes of cooking.
Check the sauce for seasoning. Remove chicken and sauce to a serving dish (or leave in the pan- rustic and all that) and top with thyme. Serve over rice or pasta with crusty bread.