Norwich Diocese emerges from bankruptcy: What is the settlement plan?

NORWICH (CT)
Norwich Bulletin [Norwich CT]

May 22, 2025

By Matt Grahn

This story has been updated.

The Diocese of Norwich is ready to move past its legal troubles and focus on its Catholic faith.

The United States Bankruptcy Court in Hartford confirmed the Diocese of Norwich’s Joint Plan of Reorganization on Thursday, “marking the official emergence of The Norwich Roman Catholic Diocesan Corporation from chapter 11 bankruptcy,” a press release stated.

“This resolution allows the Diocese, parishes and Catholic entities to move forward with clarity, accountability, and renewed dedication to charitable and religious work throughout the community, and provides an opportunity for healing to survivors,” the press release stated.

There are no plans to close any churches or reassign any priests at this time, a spokesperson for the Diocese stated.

The Joint Plan was proposed by the Diocesan Corporation, The Catholic Mutual Relief Society of America, the Association of Parishes of the Roman Catholic Diocese of Norwich, Connecticut, and the Official Committee of Unsecured Creditors, which represents the interests of the survivors, the press release stated.

The plan was filed on Feb. 10.

What is the settlement plan?

A settlement fund of $31 million is established in the Joint Plan. The fund includes contributions from Diocesan assets and sale proceeds from Diocesan properties, non-debtor assets and properties, insurance contributions, and other contributions, including a 10% reduction in allowed fees as a contribution to the settlement fund, the press release stated.

“The settlement fund provides equitable compensation to survivors of sexual abuse, acknowledging their profound pain and suffering and offers a path toward healing,” the press release stated.

What was alleged?

The alleged sexual abuse took place at the now closed Academy at Mount Saint John. The majority of the sexual abuse allegations were directed at Brother Paul McGlade and music teacher Brother Pascal Alford, both deceased, though two other staff members are named in at least one of the dozens of lawsuits that were filed. The suits claim individuals were between 10 and 15 years old when victimized between 1986 and 2000 while they attended the academy, which then served as a residential boarding school.

Why did the Diocese declare bankruptcy?

The lawsuits at the time exceeded the Diocese’s ability to pay, so voluntarily declaring bankruptcy was “the most equitable way” for the Diocese to handle the suits, according to prior Bishop Michael Cote.

“A Chapter 11 bankruptcy will allow the Court to centralize these lawsuits, as well as help the Diocese manage its litigation expenses and preserve adequate financial resources for all essential ministries,” Cote stated in a 2021 letter that was published on the Diocese’s website. “If the Diocese had not filed for bankruptcy, it would be unable to ensure that all of the individuals who file claims are treated fairly and have equal access to the funds available.”

Bishop Reidy’s statement

The recently ordained Norwich Bishop Richard Reidy called the confirmation of the Joint Plan “a step toward justice and healing.” The Diocese offers its prayers for survivors and a continued commitment to preventing abuse from happening ever again, he stated in the press release.

“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,” he said.

The Diocese also wants “to continue its mission of Catholic service ministry and education across Eastern Connecticut,” Reidy said.

How do the survivors feel about the settlement?

The survivors are happy to receive compensation for what they endured and want to move on with their lives, but “the money only does so much,” Stephen Kindseth, managing partner of Zeisler and Zeisler, P.C. of Bridgeport, the law firm representing the Committee, said.

The survivors are also pleased that the Diocese has been over the past decade or two, and will be in the future, much more diligent in its oversight of clergy and the other individuals working with the clergy, Kindseth said.

“We required certain additional protocols, and they agreed and it’s in the plan, that they’ll comply with to ensure, to the greatest extent possible, that these kinds of things don’t ever happen again,” he said.

https://www.norwichbulletin.com/story/news/local/2025/05/22/norwich-ct-catholic-diocese-bankruptcy-settlement-sexual-abuse-survivors/83793632007/