The Norwich diocese emerged from Chapter 11 bankruptcy Wednesday when the U.S. Bankruptcy Court in Hartford confirmed its Joint Plan of Reorganization.
HARTFORD, Conn. — The Diocese of Norwich is reporting that it has emerged from Chapter 11 bankruptcy.
This became official Wednesday when the U.S. Bankruptcy Court in Hartford confirmed the diocese’s Joint Plan of Reorganization. The plan was approved at a confirmation hearing presided over by the Honorable Judge James Tancredi.
The joint plan was proposed by the Norwich Roman Catholic Diocese Corporation, the Official Committee of Unsecured Creditors – representing the interests of abuse survivors, the Catholic Mutual Relief Society of America and the Association of Parishes of the Roman Catholic Diocese of Norwich, Conn.
A $31 million settlement fund has been created by the joint plan, including contributions from Diocesan assets and sale proceeds from Diocesan properties, non-debtor assets and properties and insurance contributions.
Estate professionals in the bankruptcy case agreed to a 10% reduction in allowed fees as a contribution to the settlement fund.
The settlement fund offers fair pay to survivors of sexual abuse, while acknowledging their pain and suffering. It also hopes to provide them with a path to healing, according to a Norwich diocese release.
Voting creditors and survivors reportedly gave the joint plan almost unanimous support, with essentially all voting survivors having executed releases, the Norwich diocese reports.
Most Rev. Richard Reidy, the bishop of Norwich, said that the confirmation marks an important step toward justice and healing. He added that the diocese is extremely sorry for the pain suffered by sexual abuse survivors.
“Our hope is that this settlement provides a fair measure of compensation and an opportunity for healing,” Reidy said. “We offer our sincere prayers for all survivors and remain steadfast in our commitment to ensure that such abuse can never happen again.”
Reidy added that with the plan’s confirmation, the diocese can now focus more fully on its mission of Catholic service, ministry and education in Eastern Connecticut.
The resolution will enable the diocese, parishes and Catholic entities to move forward with clarity, accountability and renewed dedication to their charitable and religious work in the community, the release said.
Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached atdzbierski@FOX61.com.
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