Diocese Files for Reorganization Under Chapter 11 of the U.S. Bankruptcy Code

By Doug Mandelaro
Diocese of Rochester
September 12, 2019

[with pdf]

[The Diocese of Rochester also posted a letter from Bishop Salvatore Matano.]

Faced with multiple legal claims under the New York State Child Victims Act that exceed its resources to settle or litigate, the Roman Catholic Diocese of Rochester today filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The parishes of the Diocese and the agencies of Catholic Charities of the Diocese of Rochester are not part of the Chapter 11 filing. The 86 parishes are separately incorporated under New York State’s Religious Corporation Law. Charitable entities such as Catholic Charities are separately incorporated under New York’s Not for Profit Corporation Law. Their ministries and operations of parishes should not be directly affected by the Diocese’s Chapter 11 proceeding.

“This is a very difficult and painful decision,” Bishop of Rochester Salvatore R. Matano said in a Letter to the Faithful and video message today. “After assessing all reasonable possibilities to satisfy the claims, reorganization is considered the best and fairest course of action for the victims and for the well-being of the Diocese, its parishes, agencies and institutions. We believe this is the only way we can provide just compensation for all who suffered the egregious sin of sexual abuse, while ensuring the continued commitment of the Diocese to the mission of Christ.”


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