NORWICH, CT (WFSB) – A settlement fund was established for survivors of sex abuse within the Diocese of Norwich, according to its representatives.
The fund came as the diocese emerged from chapter 11 bankruptcyas confirmed by U.S. Bankruptcy Court in Hartford.
The confirmation happened during a hearing on Wednesday when the diocese’s plan was approved.
Representatives for the diocese said the joint plan establishes a settlement fund of approximately $31 million. This includes contributions from diocesan assets and sale proceeds from Diocesan properties, non-debtor assets and properties, insurance contributions, and other contributions.
They said the settlement fund provides equitable compensation to survivors of sexual abuse, acknowledging their profound pain and suffering and offers a path toward healing. The plan received near unanimous support from voting creditors and survivors, with virtually all voting survivors having executed releases.
Rev. Richard Reidy, Bishop of Norwich issued a statement.
The plan was proposed by the Norwich Roman Catholic Diocesan Corporation, the Official Committee of Unsecured Creditors, representing the interests of survivors, The Catholic Mutual Relief Society of America, and the Association of Parishes of the Roman Catholic Diocese of Norwich, Connecticut.
Representatives said it allows the Diocese, parishes, and Catholic entities to move forward with clarity, accountability, and renewed dedication to their charitable and religious work throughout the community and provides an opportunity for healing to survivors.
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