Judge Grants Archdiocese $230M Chapter 11 Plan Approval After Fierce Objections

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  • $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.

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“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.