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The U.S. Bankruptcy Court for the District of Connecticut has approved the Chapter 11 reorganization plan of the Norwich Roman Catholic Diocese, officially clearing the path for the establishment of a $31 million compensation fund dedicated to survivors of childhood sexual abuse.

This plan, developed in collaboration with the official committee of unsecured creditors, is a significant step toward justice and healing for nearly 190 claimants. Judge James J. Tancredi praised the effort as a “formidable accomplishment” that required intense collaboration, patience, and legal skill.

Filed in July 2021, the Norwich Diocese's Chapter 11 case cited up to $100 million in liabilities. The newly approved plan will allow survivors, many of whom attended the former Academy at Mount St. John, to receive financial compensation through a carefully structured fund.

Key Highlights of the Conn. Diocese Ch. 11 $31M Abuse Fund:

• $31 million fund sourced from diocesan assets, real estate sales, insurance contributions, and third-party settlements.

• $5.3 million from the Catholic Mutual Relief Society of America.

• $7 million from the Oceania Province of the Congregation of Christian Brothers.

• $6.55 million from the sale of Saint Bernard School's 113-acre property.

• Participating attorneys contributed 10% of their fees to the fund.

• Structured opt-in process aligned with the U.S. Supreme Court's Purdue Pharma decision, offering higher payouts for those who grant releases.

Abuse survivors who opt into release agreements will receive up to $310,000, while those opting out or with time-barred claims will receive lower amounts, ranging from $20,000 to $133,300, depending on claim status.

Non-monetary provisions include safeguards to prevent future abuse, improved transparency, and increased institutional accountability. An additional $1.8 million has been allocated for potential future claims.

The plan also acknowledges abuse committed by clergy such as Paul McGlade and Donald Pascal Alford, both reportedly deceased, with over 100 claims linked to their time at Mount St. John.

Bishop Richard F. Reidy, newly appointed by the late Pope Francis, expressed deep sorrow and hope during the hearing. “I pray this settlement brings a measure of peace to those who have suffered... and allows our diocese to move forward with renewed conviction and vigilance,” he stated.

The plan passed with overwhelming support from survivors, with only one voting against while still opting in to a release.

Legal counsel involved includes Ice Miller LLP and Robinson & Cole LLP for the diocese, Zeisler & Zeisler PC for the unsecured creditors, and ArentFox Schiff LLP and Green & Sklarz LLC for Catholic Mutual.

The case is titled In re: The Norwich Roman Catholic Diocesan Corp., Case No. 2:21-bk-20687.