CAMDEN (NJ)
Catholic Star Herald [Camden NJ]
August 17, 2022
On August 12, 2022, the Federal Bankruptcy Court in the City of Camden adjourned the Plan of Reorganization Confirmation Hearing scheduled for August 29, 2022 until October 3, 2022. In response to this delay, Bishop Dennis Sullivan, Bishop of the Diocese of Camden, New Jersey stated: “After nearly two years and nearly unanimous support from almost every survivor, the Bankruptcy Court’s adjournment of the confirmation hearing is very unfortunate.”
In April 2022, after nearly 8 months of intense negotiation and mediation with the Tort Claimant’s Committee, the Diocese filed a joint Plan of Reorganization seeking to pay over $87.5 million to the approximately 300 survivors of clerical abuse who have filed claims during the Chapter 11 process.
Over 97.8% of survivors voted in favor of the Tort Claimants’ Committee/Diocese of Camden Plan of Reorganization. A total of 270 of the 276 voting survivors accepted the Plan of Reorganization. On August 5, 2022, their voting results were finalized.
After the mediated settlement on April 11, 2022 under the auspices of the Honorable Jose Linares, Retired Chief United States District Court Judge for the District of New Jersey, the Diocese and Committee filed the Plan of Reorganization. On May 31, 2022, approximately 6 weeks later, the Federal Bankruptcy Court in Camden approved the Disclosure Statement. That was followed by an additional three weeks for the Court to enter the Order on June 21, 2022. That Order provided a discovery schedule with nearly 75 days of discovery and scheduled confirmation of the Plan for August 29, 2022.
Vast discovery has occurred including depositions of the diocesan Vicar General Father Robert Hughes, diocesan Finance Officer Laura Montgomery and the financial advisors of the Diocese of Camden. Notwithstanding same, various insurers have delayed the case.
“The continuing delays are incredibly detrimental to all parties and stakeholders. The diocese is attempting to provide recompense to the victims for the suffering which they endured,” said the Bishop.
“The enormous expense for the Diocese of Camden of these Chapter 11 Bankruptcy proceedings – now reaching close to $20 million – are all funds which could have been available to the survivors and for the critical mission of the Church throughout South Jersey,” added Bishop Sullivan.