NORWICH (UNITED KINGDOM)
The Westerly Sun [Westerly RI]
February 18, 2025
By Ryan Blessing
The Diocese of Norwich announced Friday it has reached an agreement culminating in the filing of a joint Chapter 11 bankruptcy plan to enable the diocese and others to “provide a meaningful recovery” to survivors of sexual abuse and for the diocese to emerge from bankruptcy and continue its mission.
The joint announcement included the Official Committee of Unsecured Creditors, the Association of Parishes, and Catholic Mutual Relief Society of America.
After five days of mediation with the retired Judge Joan N. Feeney, the parties reached an agreement on a $31 million compensation fund. The joint Chapter 11 plan was filed on Feb. 10 in the U.S. Bankruptcy Court in Hartford before Judge James J. Tancredi. The compensation fund draws from multiple sources, including contributions from the diocese, Catholic Mutual, parishes, The Oceania Province of the Congregation of Christian Brothers and Mount St. John, among others, with the goal of providing a meaningful recovery to those who have suffered abuse.
“The Diocese of Norwich has always sought a plan that would address the needs of survivors, and we believe that this plan does just that,” said Archbishop Christopher J. Coyne, the Archbishop of Hartford who has been serving as the diocese’s apostolic administrator since the retirement of Bishop Michael R. Cote in September. “The deep pain and suffering endured by survivors can never be healed by financial compensation, but we are committed to making some amends through this process.”
The joint plan, which is subject to the approval of the Bankruptcy Court, provides for the creation of independent trusts that will oversee the distribution of funds to eligible survivors. The global settlement that comprises the plan was reached after extensive negotiations and collaboration with the survivor group and other stakeholders, according to the parties.
Representatives of the survivors said they support the plan of reorganization and its confirmation.
“While no amount of compensation can undo the harm that has been done, this settlement fund represents a meaningful and substantial step toward justice and healing for survivors,” said Stephen Kindseth of Zeisler & Zeisler, P.C., counsel for the Official Committee of Unsecured Creditors. “We fought hard to maximize compensation for the survivors and believe that this plan accomplishes that goal.”
A hearing on the court’s approval of the plan is expected to be held this spring. The hearing on the disclosure statement that describes and accompanies the plan of reorganization is scheduled for March 12 and 13.
“All the estate professionals in the bankruptcy case have agreed to contribute 10% of their fees to the trust that are approved by the court.” said Louis T. DeLucia of Ice Miller LLP, co-counsel for the Diocese of Norwich along with Robinson+Cole. “All professionals in this case worked diligently to formulate a plan to provide survivors with a meaningful recovery and allow the diocese to continue its important mission.”