NORWICH (CT)
Hartford Courant [Hartford CT]
May 22, 2025
The U.S. Bankruptcy Court in Hartford has confirmed the Diocese of Norwich’s Joint Plan of Reorganization, meaning the official emergence of The Norwich Roman Catholic Diocesan Corporation from chapter 11 bankruptcy, according to the Diocese.
The Norwich Diocese, said, through its law firm, said Judge James J. Tancredi presided over the confirmation hearing, held Wednesday, and “approved the plan on the record at the hearing, subject to entry of an order confirming the plan to be submitted by the parties.”
The Joint Plan was proposed by the Norwich Roman Catholic Diocesan Corporation; Official Committee of Unsecured Creditors, representing the interests of survivors, The Catholic Mutual Relief Society of America, and the Association of Parishes of the Roman Catholic Diocese of Norwich, Connecticut, according to the Diocese.
“The Joint Plan establishes a settlement fund of approximately $31 million. This includes contributions from Diocesan assets and sale proceeds from Diocesan properties, non-debtor assets and properties, insurance contributions, and other contributions,” a statement on the matter said.
“Estate professionals in the bankruptcy case, along with Hon. Joan N. Feeney (Ret.) also agreed to a 10% reduction in allowed fees as a contribution to the settlement fund. The settlement fund provides equitable compensation to survivors of sexual abuse, acknowledging their profound pain and suffering and offers a path toward healing. The Joint Plan received near unanimous support from voting creditors and survivors, with virtually all voting survivors having executed releases,” the statement said.
The Most Reverend Richard F. Reidy, Bishop of Norwich, said, also in a statement, “Today’s confirmation marks an important step toward justice and healing. We are deeply sorry for the pain suffered by survivors of sexual abuse.
“Our hope is that this settlement provides a fair measure of compensation and an opportunity for healing. We offer our sincere prayers for all survivors and remain steadfast in our commitment to ensure that such abuse can never happen again. With this plan confirmed, the Diocese is now able to continue its mission of Catholic service, ministry, and education across Eastern Connecticut.”
Then Pope Francis appointed Monsignor Richard F. Reidy as bishop of Norwich; the pontiff in September accepted the resignation of former Norwich Diocese Bishop Michael R. Cote.
Cote’s tenure in Norwich included filing for Chapter 11 bankruptcy protection in 2021 after sexual abuse lawsuits were filed against the Diocese of Norwich within the previous few years for alleged abuse at the Mount Saint John School in Deep River.
“A Chapter 11 filing was the only way to ensure an equitable settlement for abuse survivors, help us manage litigation expenses, and carry out our essential mission and ministries,” Cote said at the time. “We will work diligently with all survivors, creditors, and ministries to maintain open communication while we work toward a settlement and a restructuring plan that includes a comprehensive resolution for survivors.”
According to the Diocese, the resolution allows it, parishes, and Catholic entities to “move forward with clarity, accountability, and renewed dedication to their charitable and religious work throughout the community and provides an opportunity for healing to survivors.”
The Diocese noted that Ice Miller LLP and Robinson & Cole served as counsel for it, and GlassRatner Advisory & Capital Group LLC d/b/a B. Riley Advisory Services served as its financial advisor, working “collaboratively on the Joint Plan with the Official Committee of Unsecured Creditors represented by Zeisler & Zeisler, the Association of Parishes represented by Jones Walker, and The Catholic Mutual Relief Society of America represented by ArentFox Schiff.”