NEW ORLEANS – There's an update in the on-going process of crafting a settlement between the Archdiocese of New Orleans and those who survived its sexually abusive priests.
An announcement from the Archdiocese says that an agreement has been reached with the bond trustee in the case.
“This is a matter of justice,” said Archbishop Gregory Aymond. “We must pay our debts. I believe this is the just way to move forward for the good of survivors and the local church. We thank the faithful for their prayers for the past five years and continue to ask for prayers for the survivors of abuse. We trust that through the mercy and love of Jesus Christ the Archdiocese of New Orleans will move forward to continue sharing its mission of sharing the Gospel.”
The Archdiocese filed for Chapter 11 Reorganization Bankruptcy in May 2020, in large part due to looming costs of settlements with the many survivors of priests who sexually abused parishioners, mostly children, over the years. If you want to see the court information about this case, click here.
The Times Picayune reports that the bondholders, who were owed nearly $30 million on a $40 million loan they made to the archdiocese in 2017 to help refinance parish debt, was opposed to the settlement plan currently up for confirmation before U.S. Bankruptcy Judge Meredith Grabill. That plan, which would create a $230 million trust to be paid to hundreds of survivors of clergy sex abuse and establish strict new abuse protection and reporting policies, has the overwhelming support of abuse survivors. To read the Pic's whole story, click here.
The release from the Archdiocese says the "major hurdle" was cleared due to "the tireless prayer and work of Archbishop Gregory Aymond and his advisors, it has cleared a major hurdle in reaching an agreement with the Bond Trustee, essentially clearing the path for plan confirmation in early December. Representatives for the archdiocese noted that while they are happy and grateful to complete this phase, their focus remains on survivors as the case moves towards resolution."
"All sides expressed gratitude that this settlement, which allows for the bondholders to be paid based on mutually agreed upon terms, could be reached," the release states.
“The Official Committee of Unsecured Creditors (the Survivor Committee) is pleased that the Archdiocese and the Archbishop have resolved their disputes with the Bondholders to pave the way for confirmation of the Joint Plan in the interests of just treatment and closure for abuse survivors," the release states.
The release adds that the hearing will break for Thanksgiving and resume next week, with closing arguments set for December 4.
As dioceses and archdioceses across the U.S. face settlements with their priests' victims, many have filed for bankruptcy protection. Most recently, the Diocese of Alexandria filed. You can read our story about that here.
Back in 2019, KATC won an Emmy for a series of stories called The List, which focused on the accusations of sexual abuse in the Diocese of Lafayette. To read those stories, click here.
