Bankruptcy Court Approves Disclosure Statement in Archdiocese of New Orleans Bankruptcy; Abuse Survivors Will Now Vote on Settlement Plan

NEW ORLEANS, Louisiana, August 12, 2025 – In a significant step forward in the chapter 11 case of The Roman Catholic Archdiocese of New Orleans, the United States Bankruptcy Court for the Eastern District of Louisiana has approved the disclosurestatement associated with the joint plan of reorganization (the “Plan”) proposed by the Archdiocese, its affiliates, and the Official Committee of Unsecured Creditors representing abuse survivors in the bankruptcy case (the “Survivors’ Committee”). The bankruptcy court’s approval means that survivors of sexual abuse will now get to vote on a settlement to decide how to bring a fair end to their claims against the Archdiocese.

The settlement will provide abuse survivors with compensation projected to be $220 million plus the potential for additional recoveries, including:

• $130 million in committed cash funding to be paid by the Archdiocese and its cffiliates into a settlement trust on the effective date of the Plan;
• A $20 million promissory note from the Archdiocese that will be prepaid upon a sale of Christopher Homes, Inc.’s senior housing facilities;
• Approximately $30 million from insurance companies, which have reached settlements to date;
• The prospect of additional recoveries in 2026 (estimated to exceed $40 million) from the sale of the Christopher Homes, Inc. 15 senior living facilities, currently marketed by a national firm;
• Substantial additional recoveries from abuse litigation against Travelers Insurance Company, which insured the Archdiocese during the time period during which many of the abuse claims occurred;
• Importantly, unprecedented child protection measures and transparency into the history of abuse in the Archdiocese.

“This Bankruptcy Plan is a good outcome for abuse survivors, providing just and prompt compensation. If survivors vote to approve the Plan, they can expect to start getting payments within 3-4 months after approval. If survivors vote to reject the plan, I fear survivors won’t see any money for another 3-5 years, if ever,” said Pat Moody, Chairperson of the Survivors Committee. “And, very importantly, approval of the Plan will ensure unprecedented child protection measures and public access to the documents showing the history of abuse in the Archdiocese of New Orleans. For many of us, this structural reform is as important as financial compensation, and will only happen if the Plan is approved.” Mrs. Moody added, “The court’s approval of the disclosure statement is a necessary step toward justice for abuse survivors through the Plan.”

Binding Child Protection Measures

The Plan requires the Archdiocese and its Archbishop to implement new binding child protection protocols:

• Overhauls the handling of reports of sexual abuse to notify law enforcement; standards for investigation of claims, documentation of all communications, and regular information to the survivor; and removal of the accused perpetrator from ministry;
• Provides for outside oversight to ensure compliance with the protocols, including a survivor seat on the Internal Review Board that reviews claims of clergy abuse, and an outside child abuse prevention expert to review and monitor all child protection policies and practices;
• Adopts a Survivors Bill of Rights that requires that survivors be treated with dignity and respect, provides resources for counseling and other services, and provides survivors with a direct line of communication to the Archbishop to complain about mistreatment;
• Creates a public archive of thousands of pages of documents related to abuse claims that, up until now, have been kept secret.

“These robust provisions don’t simply acknowledge past failures—they aim to prevent future harm by imposing safeguards designed to prevent systemic abuse and cover-ups from ever again taking root within the Church’s institutions,” said Andrew Caine, a Pachulski Stang Ziehl & Jones (“PSZJ”) attorney for the Survivors’ Committee.

Opposition to Plan Offers No Good Alternative

Certain survivor attorneys attacked the Plan as “dead on arrival” even before seeing its details, and argue for dismissal of the bankruptcy case. Those attorneys are not part of the Survivors’ Committee. Dismissal of the bankruptcy is NOT a good outcome for survivors, each of whom would have to file a lawsuit and endure years of litigation and emotional distress with no certainty of compensation in the end. Abuse survivors will have to compete in a “race to the courthouse” against commercial creditors for assets of the Archdiocese, which would likely file bankruptcy again anyway, putting survivors back at square one. Dismissal would also not provide the new child protection measures.

Frank Lamothe and Gerald Meunier are renowned attorneys whose New Orleans firms have decades of experience representing injured clients, including Louisiana abuse survivors in this case. Both are in full support of the proposed settlement. Lamothe believes that “the $180 million payment plus real estate sales, and the opportunity for additional insurance recovery through litigation, offers a clear path to a just outcome now, not five or more years from now with the risk of another Archdiocese bankruptcy in the future.” Meunier adds that, “with dismissal of this bankruptcy as an alternative to this plan, survivors would be forced to speculate that prolonged delays in litigation will result in a better outcome for all. This isn’t justice. They deserve closure, not more uncertainty and courtroom battles. And none of those battles would deliver the non-monetary safeguards for future children.”

Plan Voting Is Open and Ballots Are Due as of October 29, 2025

The Bankruptcy Court’s approval of the disclosure statement now opens the door for survivors to vote on the proposed Plan. The votes will determine whether the Archdiocese and its affiliates can move forward with Plan confirmation, which would resolve the bankruptcy of the largest diocese in Louisiana. “Finally, survivors themselves will take control of their legal battle. The decision now belongs to them and not to the lawyers hoping that at least one or two of their many clients might win big in the race to the courthouse before the Archdiocese inevitably files another bankruptcy” said James Stang, PSZJ attorney for the Survivors’ Committee.

The Survivors’ Committee will host online town hall meetings (on September 12, September 24 and October 20) to provide more information for survivors. “I strongly encourage survivors to attend one of our town halls to ask all of their questions about the Plan and hear why we on the Survivor Committee support the Plan,” urged Mrs. Moody.

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