Archdiocesan Bankruptcy Case Moving Ahead
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A major milestone was met this month in the Archdiocese of New Orleans’s Chapter 11 Reorganization case.
The United States Bankruptcy Court for the Eastern District of Louisiana formally approved the Disclosure Statement associated with the Joint Plan of Reorganization (the “Plan”) proposed by the archdiocese, its apostolates and the Official Committee of Unsecured Creditors representing abuse survivors in the bankruptcy case (the “Survivors Committee”). The Bankruptcy Court’s approval means that survivors of sexual abuse will now get to vote on a settlement.
Archbishop Gregory Aymond called this approval a “major step forward” in bringing the reorganization to conclusion.
“We all know that these proceedings have gone on far too long,” said the archbishop.”This is a major step forward, and it is my hope that work will continue to bring this to a resolution.”
Now, solicitation packets will be prepared and sent later this month to all those who have filed a claim in the Archdiocese of New Orleans’s bankruptcy case. Survivors will have the opportunity to review the information and vote either “yes” to confirm the plan or “no” to reject it. Two-thirds of the claimants must vote “yes” for the plan to move forward towards a confirmation hearing, which has been set to start in the middle of November if the plan receives enough votes.
In a press release from the Survivor’s Committee, Pat Moody, chairperson of the survivors committee was quoted as saying, “This Bankruptcy Plan is a good outcome for abuse survivors, providing just and prompt compensation. If the survivors vote to approve the Plan, they can expect to start getting payments within three to four months after approval. If survivors vote to reject the plan, I fear survivors won’t see any money for another three to five years, if ever.”
“And, very importantly, approval of the Plan will ensure unprecedented child protection measures and public access to the documents showing the history of abuse in the Archdiocese of New Orleans. For many of us, this structural reform is as important as financial compensation, and will only happen if the Plan is approved.” she added, “The court’s approval of the disclosure statement is a necessary step toward justice for abuse survivors through the Plan.”
Plan details
Archbishop Aymond is cautioning the faithful saying, “This plan will require sacrifices on the part of the Archdiocese of New Orleans.”The plan proposes a settlement that will provide abuse survivors with compensation projected to be $220 million plus the potential for additional funds, including:
- $130 million in committed cash funding to be paid by the archdiocese and its affiliates into a Settlement Trust on the effective date of the Plan;
- A $20 million promissory note from the archdiocese which will be prepaid upon a sale of Christopher Homes, Inc.’s senior housing facilities;
- Approximately $30 million from insurance companies, which have reached settlements to date;
- The prospect of additional recoveries in 2026 (estimated to exceed $40 million) from the sale of the Christopher Homes, Inc. 15 senior living facilities, currently marketed by a national firm;
- Substantial additional recoveries from abuse litigation against Travelers Insurance Company, which insured the archdiocese during the time period in which many of the abuse claims occurred;
- Importantly, unprecedented child protection measures and transparency into the history of abuse in the archdiocese.
The Plan also includes a set of non-monetary commitments that will enhance the Archdiocese of New Orleans’s already robust child protection program. The new binding child protection protocols:
- Overhaul the handling of reports of sexual abuse to notify law enforcement, standards for investigation of claims, documentation of all communications and regular information to the survivor and removal of the accused perpetrator from ministry.
- Provide for outside oversight to ensure compliance with the protocols, including a survivor seat on the Internal Review Board that reviews claims of clergy abuse, and an outside child abuse prevention expert to review and monitor all child protection polices and practices.
- Adopt a Survivors Bill of Rights that requires that survivors be treated with dignity and respect, provides resources for counseling and other services, provides survivors with a direct line of communication to the Archbishop to alert of any mistreatment.
- Create a public archive of thousands of pages of documents related to abuse claims that, up until now, have been kept private.
“I strongly encourage survivors to attend one of our town halls to ask all of their questions about the Plan and hear why we on the Survivor Committee support the Plan,” urged Moody.
Looking forward
Archbishop Aymond offered his prayers for the abuse survivors and said he is looking ahead to the confirmation hearing where he plans to attend and hear survivor testimony in court.