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CV NEWS FEED // The Archdiocese of New Orleans has filed a Chapter 11 reorganization plan in bankruptcy court in the wake of lawsuits resulting from clergy sex abuse.
Archbishop Gregory M. Aymond’s letter to his diocese, which was published in the Clarion Herald, stated that the reorganization was a milestone in assisting abuse survivors.
“As I shared with you when we filed for Chapter 11 Reorganization, our main priorities are to assist the abuse survivors on a path towards healing that includes fair and equitable compensation for them while creating a more financially sustainable archdiocesan ministry for the future,” the letter stated.
According to the letter, the plan includes both monetary compensation for abuse survivors and “non-monetary covenants,” which the Archbishop describes as “actions that we publicly pledge to take to continue our commitment to ensuring our parishes, schools, and ministries are safe places for all to grow in faith, be educated, and to participate in ministry.”
According to The Guardian, the committee representing approximately 500 clergy abuse victims proposed that the Archdiocese pay the victims $1 billion in compensation, or about $2 million per claim. The Archdiocese countered with $62 million, or $125,000 per claim.
The Guardian reports that the committee proposed that most of the proposed $1 million come from insurers, with the Archdiocese paying $84m and its apostolates paying $133m. The Archdiocese’s plan offered to pay $50m, with its apostolates paying $12.5m. Insurance would not contribute.
The Guardian also states that the Archdiocese has already spent $40 million in legal and professional fees, and insurance has not covered any of these fees.
