The bankrupt Roman Catholic Diocese of Norwich, Connecticut and advocates for survivors of clergy sex abuse have reached an agreement on a $31 million compensation fund.
The plan, which is subject to the approval of the bankruptcy court, seeks to provide recovery to those who have suffered abuse and allow the diocese to emerge from Chapter 11 bankruptcy. The joint plan provides for the creation of independent trusts to oversee the distribution of funds to eligible survivors.
Contributions to the proposed fund would include about $5.3 million from insurer Catholic Mutual; $1.6 million from the diocese; $2.7 million from its parishes; proceeds from the sale of several diocesan school properties including $6.5 million for St. Bernard and $2.5 million from Xavier; and $7.0 million from an orphanage in Australia with ties to the Norwich diocese and its clergy.
In addition, all the estate professionals in the bankruptcy case have agreed…
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