NORWICH (CT)
Insurance Journal [San Diego CA]
September 10, 2024
The Roman Catholic Diocese of Norwich and its parishes, along with its insurer Catholic Mutual Relief Society of America, have filed a joint Chapter 11 plan of reorganization as the diocese seeks to emerge from bankruptcy.
The plan includes a $30 million trust fund for survivors of clergy sexual abuse. Contributions to the proposed fund would include $3 million from the diocese, and its parishes, $4.8 million from Catholic Mutual, and millions in proceeds from the sale of several school properties including the land at St. Bernard’s which sold for $6.5 million and the Xavier property for $2.5 million.
The diocese filed for bankruptcy in July 2021, citing as many as 60 sexual abuse lawsuits against it. Since then, it has received approximately 142 additional claims from abuse survivors.
The diocese says the plan is meant to enable it to emerge from bankruptcy to continue its mission while also providing recovery to sexual abuse claimants.
Over a year ago, the diocese and the Official Committee of Unsecured Creditors, which represents sexual abuse claimants, sought bankruptcy court approval of an agreed-upon $29 million plan of reorganization. However, the survivors’ committee withdrew from that plan on June 27, filing its own plan that the diocese maintains will result in years of litigation and uncertainty for claimants.
Last month, U.S. Bankruptcy Judge James J. Tancredi gave the diocese the opportunity to file its own plan as an alternative to the survivors’ committee’s plan.
The Norwich diocese covers four counties in eastern Connecticut and serves an estimated 230,000 Catholics.