Archdiocese of Baltimore files new Chapter 11 bankruptcy reorganization plan

BALTIMORE (MD)
WBAL-TV, NBC-11 [Baltimore MD]

May 18, 2026

By David Collins

Almost $169 million would be available to settle 900 claims, court documents reveal

BALTIMORE — There are possible changes to Chapter 11 plans for the Archdiocese of Baltimore.

The church on Friday filed a 175-page Chapter 11 reorganization plan that contains a new dollar amount and includes contributions from parishes and schools, WBAL-TV 11 News Investigates has learned.

COURT DOCUMENTRead the new Chapter 11 reorganization plan

The archdiocese called the reorganization plan a step toward recognizing child abuse survivors’ rightful desire for a resolution of their claims.

According to court documents obtained by WBAL-TV 11 News Investigates, almost $169 million would be available to settle 900 claims.

David Lorenz, the director of the Maryland Survivors Network of those Abused by Priests, expressed relief that the process may be moving forward.

“I have two reactions. First, is kind of relief; finally, they’re stepping up, they’re doing something. Although they were given a deadline by the judge, the bankruptcy judge, who basically told them they have to come up with something, and they did. It shows a little bit. It shows. It looks hurried. It looks inadequate,” Lorenz told WBAL-TV 11 News Investigates.

But Lorenz said he’s disappointed that, in his words, the church is “lowballing them.”

“With roughly 900 claimants, that comes in at under $200,000 per claimant on average,” Lorenz told WBAL-TV 11 News Investigates. “Survivors, most of the ones I’ve talked to, are (saying), ‘I think this is … an extreme lowball,’ and that the church should step forward.”

The archdiocese wants to channel settled abuse litigation into a survivor compensation trust.

  • The proposal calls for the archdiocese to contribute almost $49 million, which would include one-time contributions from parishes and diocese schools and related Catholic entities. How much those contributions would be has not been determined.
  • The total amount from insurance companies would be $125 million.
  • A second trust would be established for insurers that did not agree to settlements.

The plan calls for a review committee to decide how much money each abuse survivor would receive.

“It’s one of the most horrible aspects of, this is what a review committee has to do, is say, ‘Well, your abuse was worse than this person’s abuse, and therefore you get more money,'” Lorenz told WBAL-TV 11 News Investigates.

Objections to the plan must be filed by May 29. The federal bankruptcy judge set up a schedule for hearings from early June through September.

Archdiocese statement on Chapter 11 reorganization plan

In a statement posted on its website, the archdiocese wrote:

“As mediation in the Chapter 11 bankruptcy process continues, the Archdiocese of Baltimore has submitted a proposed plan of reorganization to the court. This step is in furtherance of the archdiocese’s pursuit of accomplishing its dual objectives in its bankruptcy proceeding, in recognition of child abuse survivors’ rightful desire for a resolution of their claims, and in response to the court’s direction to any party who intends to file a plan to do so by May 15. At its core, the proposed plan seeks to provide equitable compensation to survivors while sustaining the church’s mission and ministries. It reflects a commitment to transparency and a realistic assessment of available resources.

“While the archdiocese remains firmly committed to reaching an agreed-upon resolution through mediation with representatives of survivors and insurers, no final agreement has yet been achieved. The proposed plan is intended to advance discussions, provide a framework for resolution and support continued dialogue among all parties. The proposal includes establishing an independent Survivor Compensation Trust to evaluate claims and distribute compensation to survivors. The trust would be funded by contributions from the archdiocese, its insurers, and participating parishes, schools, and related Catholic entities.

“In order to achieve a unified and coordinated resolution, the plan contemplates parishes and certain Catholic entities choosing to participate in the archdiocese’s plan of reorganization by filing, at a later stage, an abbreviated and streamlined version of Chapter 11. Should this prepackaged reorganization be filed, operations in the parishes and schools would continue without interruption. The terms of such bankruptcies would be established in advance, thus enabling them to be resolved in a short period of time and provide certainty and finality to the process.

“The archdiocese will continue to listen, to learn, and to seek a resolution that honors the dignity of survivors and strengthens the mission of the church for generations to come.

“Please continue to pray for all who have been harmed, for their healing and peace.”

RECENT TIMELINE

Maryland Attorney General’s Church Child Sex Abuse Investigation

In the 1990s, the Archdiocese of Baltimore received complaints of sexual abuse involving some of its priests dating back decades. According to the archdiocese, it established policies and an independent review board in 1993 and began reporting allegations of abuse as a result of guidance mandated by the Maryland Attorney General’s Office.

In 1994, the archdiocese removed Joseph Maskell from ministry amid credible allegations of child sexual abuse. Maskell’s name is seen nearly 200 times throughout a more than 450-page AG report that would be published in 2023. He was one of the primary subjects of the Netflix docuseries “The Keepers,” about a Baltimore Archbishop Seton Keough High School teacher found dead in 1970.

In 2002, the clergy sex abuse scandal exploded in Boston after it was revealed that dozens of priests molested and raped children for decades while church supervisors covered it up and shuffled abusive priests from parish to parish, our sister station, WCVB, reported.

That same year, the Archdiocese of Baltimore apologized for abuse committed by ministers of the church and voluntarily published a detailed list naming credibly accused clergy. In the years that followed, the archdiocese reports it implemented mandatory screening and training policies for employees and volunteers, began offering mediated financial settlements to victim-survivors and required annual child protection refresher training for all employees/clergy.

In 2018, a sweeping Pennsylvania grand jury report accused senior church officials of systematically covering up complaints involving more than 1,000 children who were molested by roughly 300 Roman Catholic priests since the 1940s.

More victims in Baltimore came forward thereafter, and the Maryland Attorney General’s Office opened an investigation that ultimately revealed decades of child sexual abuse and leadership’s efforts to cover it up.

This a brief timeline of the events that followed.

June 1, 2017

The Netflix documentary series “The Keepers” reveals a long-standing and baffling cold case, focusing on a Baltimore County police investigation into the disappearance and

killing of Sister Cathy Cesnik. – Story

June 2, 2017

“The Keepers” focuses on a killing and years of molestation at a Baltimore high school, and it has helped to bring more victims to light. – Story

June 6, 2017

The story of young women who say they were abused at Archbishop Keough High School in the late 1960s through the early 1970s is highlighted in “The Keepers.” – Watch: Victim speaks out to 11 News

Aug. 16, 2018

Baltimore sexual abuse victims hope release of grand jury report in Pennsylvania will lead to action in Maryland. – Story

Sept. 25, 2018

Maryland Attorney General Brian Frosh launches a review of sexual abuse in the Archdiocese of Baltimore. – Story

Nov. 9, 2018

11 News I-Team Exclusive: Baltimore Archbishop William Lori addresses church sex abuse scandal: “We have to be held to the same high standard we hold our priests and lay employees and volunteers to. We should have the same standards and the same consequence.” – Watch

April 24, 2019

The archdiocese adds 23 names of deceased priests and brothers previously and credibly accused of child sexual abuse to its online list. – Story

June 12, 2019

Following the Archdiocese of Baltimore enacting a third-party reporting practice in January 2019 — the first diocese in the nation to do so — the U.S. Conference of Catholic Bishops met in Harbor East and authorized a national anonymous third-party system for confidential reporting of abuse allegations. The bishops approved a self-imposed deadline for implementation of May 31, 2020, and Baltimore fully adopted the national version in 2020. – Story

“A reporting system that goes to two lay members of our review board, two judges and to law enforcement, and what we see now is these sorts of things, God willing, on a national level,” Lori said.

Victim-survivors said the hope the reporting system will lead to change. – Story

Nov. 17, 2022

Frosh files a motion to release his office’s investigative report of child sexual abuse in the archdiocese. – Story

Nov. 18, 2022

Court issues ruling, redacted report can be released after redacted copy is prepared. – Story

Feb. 24, 2023

Victim-survivors call on the report to be released and the investigation expanded. – Story

March 15, 2023

Court receives redacted report for review. – Story

April 4, 2023

Judge authorizes report’s release. – Story

April 5, 2023

Attorney General Anthony Brown’s office

releases the report, revealing decades of child

sexual abuse and the archdiocese leadership’s

efforts to cover it up. The report lists 156

current or former Catholic clergy, seminarians,

deacons, teachers at Catholic schools, others as having abused hundreds of children.

Read the Report | Victims | List of Abusers | Exclusive: Lori responds | Signs to watch for

The same day of the report’s release, the Maryland House bill that would eliminate the statute of limitations on child sex abuse cases, the Child Victims Act of 2023, was approved and sent to the governor. – Previous report on the bill

April 14, 2023

A reignited controversy over revealing names brews over the attorney general’s report. The archdiocese posts a new FAQ page on its website about the attorney general’s report. The Attorney General’s Office releases a series of statements, saying most of what the archdiocese said is untrue, misleading and unfair to survivors. – Story

May 9, 2023

Attorneys Ben Crump and Adam Slater put the archdiocese on notice for lawsuits months before a new state law eliminates the statute of limitations for sexual abuse lawsuits. – Story

June 30, 2023

The archdiocese’s list of priests and brothers accused of child sexual abuse, which has different criteria than that used in the attorney general’s report, grows by 39 names. – Story

Aug. 22, 2023

A Baltimore court rules that more redacted names can be revealed from the attorney general’s report. The AG said the names of 10 alleged abusers and five ranking archdiocese officials were redacted. As a result of the court’s order, all but three of those individuals will now have their names revealed in the report. – Story

Sept. 26, 2023

Maryland Attorney General Anthony Brown releases a revised interim report on child sexual abuse in the archdiocese. The new report removed some of the redactions that the court had ordered in the report’s initial release in April. By order of the Baltimore City Circuit Court, some of the information remains redacted while certain individuals named in the report appeal a decision to disclose their identities. – Story

Sept. 29, 2023

The Archdiocese of Baltimore files for Chapter 11 bankruptcy protection as it faces a potential for child sexual abuse lawsuits. This comes days before a new Maryland law took effect that eliminates the statute of limitations for victims of sexual abuse to file lawsuits and raises a cap on noneconomic damages to $1.5 million per incident. – Story

11 News Exclusive: “We realized if we tried to litigate (the lawsuits) individually, that

we would very quickly run out of resources. The first few would be compensated, but

no one else would be compensated,” Lori said.

Eric Steiner, a bankruptcy attorney who is not involved in the proceedings, explains to the 11 News I-Team that filing for Chapter 11 bankruptcy, in this case, is likely a strategic move by church officials.

“It is often used when the liabilities outweigh the assets, which seems to be the case,” Steiner said. “So, it can be an efficient way to resolve claims, and obviously, the archdiocese is going to want to pay as little as possible versus the creditors that want more. So, really, the court’s job is to balance the interests of both sides.”

Oct. 3, 2023

The Archdiocese of Baltimore appears in federal bankruptcy court and was granted a full 30 days for the church to add up its assets. The judge also agreed to seal the names of the more than 600 victim-survivors who are expected to file civil lawsuits, as well as the 197 names of archdiocesan employees. – Story

May 22, 2024

The Archdiocese of Baltimore released its final realignment plan to close and/or merge dozens of parishes across the city and immediate suburbs. – Story

Oct. 4, 2024

Appealing church closures: There’s action underway by Catholic parishes to try to remain open amid the archdiocesan restructuring plan. – Story | List: Final church closures

Nov. 24, 2024

Some churches hold Sunday Mass for the last time at their home churches. – Story

Dec. 15, 2025

The archdiocese agrees not to assert charitable immunity in its bankruptcy case. – Story

https://www.wbaltv.com/article/archdiocese-baltimore-new-bankruptcy-reorganization-plan/71340794