CV NEWS FEED // The Catholic Diocese of Syracuse, New York, has proposed a financial plan that could lead the Diocese out of bankruptcy, but it has to be approved by creditors in a vote by July 1.
The Diocese filed for bankruptcy four years ago, after 38 people filed Child Victims Act lawsuits against the Diocese, according to a 2020 article from syracuse.com. The proposed plan, filed earlier this May, has been sent to the creditors to review and vote on.
According to a May 30 article from Syracuse.com, the plan includes a $100 million fund “to pay abuse survivors if they end their lawsuits against the church.”
It is the second largest payment from any Roman Catholic diocese in a bankruptcy case, Syracuse.com noted.
Half of the fund will be paid for by the Diocese directly, and the other half will be paid for by Catholic Charities, parishes, and Catholic schools.
Timothy Lyster, a lawyer for the diocesan parishes, said in court that “[t]he parishes are still scraping to get this money together, as is typical in these cases.”
According to Syracuse.com, Taylor Stippel, a lawyer from Jeff Anderson and Associates who is representing the victims, said of the Diocese’s payment, “We are confident and we know that the diocese and the parishes and the schools will be able to marshal that $100 million. Because they agreed to it. Because they’ve signed off on it.”
If approved, the plan will be brought to Northern District of New York Chief Bankruptcy Judge Wendy Kinsella for either approval or rejection, following a hearing about the plan scheduled for September 16.
