As of Friday, September 6, 2024, the Roman Catholic Diocese of Norwich, in collaboration with its insurance provider, Catholic Mutual, and the Association of Parishes, has finalized a joint Chapter 11 Plan of Reorganization. This initiative is designed to help the Diocese emerge from bankruptcy while offering meaningful support to survivors eligible for recovery.
More than a year ago, the Diocese and the Official Committee of Unsecured Creditors, representing survivors, reached an agreement through extensive mediation led by a retired federal judge. However, in June, the Committee abruptly withdrew from the agreement, opting instead to pursue a plan that could result in years of costly litigation, increased legal fees, and continued uncertainty for survivors.
Despite numerous attempts by the Diocese to bring the Committee back to the negotiating table for a collaborative resolution, the Committee has refused further discussions. Their current proposal offers no immediate relief for survivors and risks delaying any potential recovery by years.
In response, the Diocese, Catholic Mutual, and the Parishes have jointly filed a new plan. This plan establishes a Trust with approximately $30 million to provide more immediate and meaningful support to survivors. Unlike the Committee’s litigation-focused strategy, the Diocese’s plan seeks to expedite the recovery process, ensuring funds are available without prolonged legal delays.
The Diocese remains hopeful that ongoing dialogue will eventually lead to a shared solution. The primary goal is to avoid unnecessary litigation and focus resources on healing, rebuilding trust, and guiding the Diocese out of bankruptcy.
We ask for continued prayers, especially for the survivors and all those affected, as we move forward with faith, hope, and compassion.