Diocese Files Plan of Reorganization
Diocese of Winona-Rochester
February 10, 2021
The Diocese of Winona-Rochester has reached a settlement with the Creditors’ Committee representing 145 survivors of clergy sexual abuse. “It is my desire and hope that the compensation paid in this settlement will help the survivors heal from the pain they have felt over these many years. We must never forget the tragic anguish caused by individuals who abused their power and positions of authority. We must stay vigilant in our unwavering commitment to protect the youth in our Diocese who rely on priests, deacons, religious, and lay people to keep them safe and provide for their spiritual care.” said the Most Reverend John M. Quinn, Bishop of the Diocese of Winona-Rochester.
This settlement, mutually agreed to by the Diocese and the Official Committee of Unsecured Creditors, includes resolution of claims against the parishes, schools and other Catholic entities within the Diocese. The $21.5 million settlement will allow the Diocese to submit a Plan of Reorganization to the U.S. Bankruptcy Court for approval as part of its Chapter 11 bankruptcy proceedings.
In addition to fully satisfying the financial commitment of the Diocese, the settlement provides for additional proceeds from certain insurance companies. The agreement reached with the Committee also provides for future action against certain additional insurance carriers that provided coverage to the Diocese in the 1960’s and 1970’s. Claims stemming from that time period with those insurance carriers are still unresolved and additional compensation to the survivors may be recovered to the extent of the coverage provided by those insurance carriers. With the filing of the Plan of Reorganization, the Diocese will next pursue confirmation of the plan, a process that will include the filing of a disclosure statement and, after its approval, soliciting votes on the plan from survivors and other creditors, and ultimately a hearing at which the bankruptcy judge will decide whether to confirm the plan.