The Roman Catholic Archdiocese of New Orleans won court approval Monday for its sweeping Chapter 11 reorganization plan — a move that unlocks a $230 million settlement for hundreds of childhood sexual abuse survivors and ends one of the nation’s most closely watched church bankruptcies.
A Landmark Settlement Amid Decades of Allegations
U.S. Bankruptcy Judge Meredith S. Grabill overruled the final objections lodged by one of the archdiocese’s insurers, clearing the path for the long-negotiated plan. She said she spent the last week absorbing the deeply personal impact statements submitted by survivors.
“You know and I know there is no court system in this country that can make survivors whole,” she told the courtroom, acknowledging the weight of decades of trauma.
The archdiocese filed for Chapter 11 protection in May 2020 as more than 650 abuse claims — some reaching back over 50 years — converged in federal court.
Breakdown of the $230 Million Trust
Under the confirmed plan, an abuse settlement trust will be created and funded by:
