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:

• $65 million from the archdiocese,

• $135 million from parishes, schools, and affiliated ministries, and

• $29.3 million from insurance settlements.

The agreement was hammered out in May between the archdiocese and the unsecured creditors’ committee representing survivors, resolving tensions with bondholders and addressing concerns raised by the U.S. trustee’s office.

Insurer Objections Rejected

The lone remaining hurdle was Continental Insurance, which argued it had been improperly shut out of decisions regarding late-filed claims and the allocation of defense costs tied to disputed claims involving multiple insurers.

Judge Grabill rejected both objections, noting the claims at issue targeted the archdiocese directly.

“The allowance of the claim creates an obligation for the diocese, not the insurer,” she said. She also ruled that no overlapping coverage periods existed that would trigger Continental’s cost-sharing concerns.

Survivor Statements Left a Mark

Judge Grabill said she took the weekend to read the survivor statements filed after last week’s dedicated hearing day.

“I have sat with the things you have told me for about a week now,” she said, adding that she hopes the resolution helps “rebuild trust” in a community scarred by systemic abuse.

Legal Teams Behind the Deal

• Archdiocese: R. Patrick Vance, Elizabeth J. Futrell, Mark A. Mintz (Jones Walker LLP)

• Parishes/Affiliates: Douglas S. Draper, Greta S. Brouphy, Michael E. Landis (Heller Draper & Horn LLC)

• Unsecured Creditors Committee: James I. Stang, Iain A.W. Nasatir, Andrew W. Caine, Karen B. Dine (Pachulski Stang Ziehl & Jones LLP); Omer F. Kuebel III, Bradley C. Knapp, W. Steven Bryant (Troutman Pepper Locke LLP)

• Travelers: M. Keith Moskowitz, Patrick C. Maxcy, Jerry A. Beatmann Jr., Natalie Michelle Limber (Dentons)

The approval marks a watershed moment in the years-long bankruptcy — and a critical step toward restitution for hundreds of survivors whose stories reshaped the case from start to finish.