The Diocese of Rochester and its creditors' committee have filed a modified joint Chapter 11 plan of reorganization that would establish a $126.35 million trust fund for survivors of clergy abuse, according to documents filed Wednesday in the U.S. Bankruptcy Court for the Western District of New York (Case No. 19-20905).
The proposed plan, filed by Bond, Schoeneck & King PLLC on behalf of the diocese, includes $55 million in contributions from the diocese and other participating Catholic entities, along with $71.35 million from settlements with various insurers including Lloyd's of London, Interstate Fire & Casualty Company, and First State Insurance Company.
Notably, Continental Insurance Company (CNA), a key insurer, has not settled. The plan offers CNA the option to become a settling insurer by contributing $171 million to the trust fund. If CNA accepts, the total settlement fund would increase to $297.35 million.
"The plan provides that funding for the Trust and the Abuse Claims Settlement Fund will be provided from, among other potential sources of recovery, a cash contribution by the Diocese and other Participating Parties in the aggregate amount of $55 million," the disclosure statement notes. The diocese expects to contribute approximately $25 million, with participating parties providing the remaining $30 million.
The plan proposes an allocation protocol where an independent reviewer will evaluate abuse claims and assign points based on various factors. Distributions will be made proportionally based on these assessments, with potential enhancements for claimants who filed timely lawsuits under New York's Child Victims Act.
If approved, the plan would resolve more than 550 abuse claims filed against the diocese since it entered bankruptcy in September 2019. The bankruptcy court has scheduled a confirmation hearing for early 2025.
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