Diocese of Norwich emerges from bankruptcy
CONTRIBUTED
The Most Rev. Richard F. Reidy, bishop of Norwich.
The Diocese of Norwich said it has emerged from Chapter 11 bankruptcy, after a court on Thursday approved its reorganization plan, which will compensate dozens of sexual assault survivors.
The diocese filed for Chapter 11 bankruptcy in 2021 as it faced nearly 60 lawsuits alleging sexual abuse of students at Mount St. John School in Deep River.
The reorganization plan creates a settlement fund of about $31 million, which includes contributions from the diocese and its parishes; its insurance carrier, Catholic Mutual; proceeds from the sale of several properties and other sources.
“The settlement fund provides equitable compensation to survivors of sexual abuse, acknowledging their profound pain and suffering, and offers a path toward healing,” the diocese said in a statement.
On Thursday, the U.S. Bankruptcy Court in Hartford confirmed the diocese’s joint plan of reorganization, allowing the bankruptcy proceedings to end. Judge James J. Tancredi presided over the confirmation hearing.
The reorganization plan received near unanimous support from voting creditors and survivors.
“Today’s confirmation marks an important step toward justice and healing,” said the Most Rev. Richard F. Reidy, bishop of Norwich. “We are deeply sorry for the pain suffered by survivors of sexual abuse. Our hope is that this settlement provides a fair measure of compensation and an opportunity for healing. We offer our sincere prayers for all survivors and remain steadfast in our commitment to ensure that such abuse can never happen again. With this plan confirmed, the diocese is now able to continue its mission of Catholic service, ministry and education across eastern Connecticut.”
Ice Miller LLP and Robinson & Cole served as counsel for the Diocese of Norwich and GlassRatner Advisory & Capital Group LLC d/b/a B. Riley Advisory Services served as its financial advisor.
They worked on the reorganization plan with the Official Committee of Unsecured Creditors, represented by Zeisler & Zeisler; the Association of Parishes, represented by Jones Walker and The Catholic Mutual Relief Society of America, represented by ArentFox Schiff.
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