Statement Regarding Filing of Joint Plan of Reorganization

From Thomas J. Abood, Chair, Archdiocesan Reorganization Task Force and Archdiocesan Finance Council

Today the Archdiocese and the Unsecured Creditors Committee filed a joint Plan of Reorganization which marks an important step in effectuating the recently announced $210 million settlement.  The key element of this plan is that it is a consensual agreement among all parties working to resolve the bankruptcy and bring a measure of financial justice to those who have been harmed while also allowing this local Church to continue in its mission.

As I described at the time of the announcement of the $210 million settlement, the plan filed today demonstrates and details significant contributions from insurance policies that were purchased by the Archdiocese and parishes over the past seven decades, proceeds from medical and other insurance excess reserves and meaningful cash contributions from parishes and the Archdiocese.  The Archdiocesan cash contributions were funded in part through sales of properties and a future commitment of $1,000,000 per year for 5 years.

The process continues to move forward as we now seek Judge Kressel’s guidance on the best ways to expedite confirmation of the plan consistent with bankruptcy requirements. While the plan we have filed today may be modified and refined as we move toward confirmation in the coming months, we expect the final approved plan will be in substance what we have filed today.