The Roman Catholic Church of the Archdiocese of New Orleans is moving closer to resolving its long-running bankruptcy case, as evidenced by a joint motion filed last week seeking to extend the appointments of two key mediators as settlement talks progress. The filing reveals that after years of negotiations, the archdiocese has reached settlements with most of its insurers and has filed a joint reorganization plan with its creditors—significant milestones in a case likely stemming from sexual abuse claims.
In a motion filed on July 23, 2025, in the U.S. Bankruptcy Court for the Eastern District of Louisiana, the archdiocese, affiliated apostolate organizations, and the Official Committee of Unsecured Creditors jointly requested extensions for mediators John W. Perry, Jr. until August 31, 2025, and former bankruptcy judge Christopher Sontchi until October 31, 2025. The current terms for both mediators are set to expire on July 31.
"The Movants believe that the continued assistance of Mr. Perry through the Solicitation Deadline and the continued assistance of Judge Sontchi through the Confirmation Objection Deadline, respectively, may continue to be necessary to certain aspects of this Chapter 11 Case as it continues to conclusion," the parties stated in their filing.
The request comes at a crucial juncture in the five-year-old bankruptcy case. On July 15, 2025, the archdiocese, creditors committee, and certain affiliated apostolates filed a joint Chapter 11 plan of reorganization, a disclosure statement, and a motion seeking approval of solicitation procedures—key steps toward emerging from bankruptcy protection.
According to the court documents, the parties reached a breakthrough during a May 16 mediation session, entering into a memorandum of understanding that formed the basis for the joint reorganization plan. The filing also reveals that the archdiocese "has reached settlements in principle with all of its insurance carriers except for the insurer with the largest potential exposure," suggesting that significant compensation funds may be forthcoming for abuse survivors.
The motion outlines several critical upcoming dates in the bankruptcy process. The court will hear arguments on the disclosure statement on July 31, 2025. If approved, solicitation packages will be sent to claims holders by August 28, with voting on the plan to conclude by October 29. A confirmation hearing is scheduled for November 12.
The mediation team has grown over time to address the complex case. U.S. Bankruptcy Judge Gregg W. Zive was first appointed in October 2021, with Perry joining in February 2024 to focus primarily on insurance carrier negotiations. Sontchi was added in January 2025 "to accelerate the plan mediation process" and has been intensively engaged with the archdiocese, apostolates, creditors' committee, and counsel for abuse survivors through "numerous telephone and Zoom conferences, as well as three in-person mediation sessions."
The Archdiocese of New Orleans filed for Chapter 11 protection in May 2020, joining a growing list of Catholic dioceses seeking bankruptcy protection amid mounting sexual abuse claims. While the filing doesn't specify the total value of claims, Catholic diocese bankruptcy cases have often involved settlements in the hundreds of millions of dollars.
The archdiocese is represented by Jones Walker LLP, while Heller, Draper, & Horn, L.L.C. represents the apostolates. The creditors' committee is represented by Pachulski Stang Ziehl & Jones LLP and Troutman Pepper Locke LLP.
Judge Meredith S. Grabill is presiding over the case, numbered 20-10846, in the Eastern District of Louisiana Bankruptcy Court.
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