The Roman Catholic Bishop of Oakland has filed a second amended disclosure statement detailing its proposed Chapter 11 reorganization plan, which includes establishing a survivors' trust with assets potentially exceeding $160 million to compensate victims of clergy sexual abuse.
Filed in the U.S. Bankruptcy Court for the Northern District of California (Case No. 23-40523), the disclosure statement outlines a plan that would provide initial funding of $63 million in cash from the diocese, along with property in Livermore valued between $43 million and $81 million. The Roman Catholic Welfare Corporation of Oakland would contribute an additional $14.25 million contingent on receiving releases from abuse claimants.
The diocese, represented by Foley & Lardner LLP, filed for Chapter 11 protection in May 2023 following California legislation that temporarily lifted the statute of limitations for childhood sexual abuse claims. Approximately 386 unique abuse claims have been filed against the diocese.
Under the proposed plan, abuse survivors would have three options: accept an immediate $50,000 payment, participate in a trust distribution program, or pursue litigation against the diocese's insurers. The plan also includes provisions for unknown future claims, with $5 million set aside in a separate reserve.
The diocese's reorganization strategy includes significant real estate sales, including vacant parcels and some properties with active churches. The plan faces opposition from the Official Committee of Unsecured Creditors, which disputes several aspects of the proposed reorganization.
A confirmation hearing is scheduled for March 2025 before Judge William J. Lafferty III.
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Link to Full Document: Second Amended Disclosure Statement for Second Amended Plan of Reorganization
Document length: 102 pages