Bankruptcy Court Confirms Consensual Reorganization Plan for the Archdiocese of New Orleans

On December 8, 2025, Judge Meredith S. Grabill of the Eastern District of Louisiana confirmed the Archdiocese of New Orleans’ (“The Archdiocese”) joint plan of reorganization (the “Plan”), including a settlement of the sexual abuse claims filed against the Archdiocese and its parishes and affiliates. The settlement created a trust funded with $130 million from the Archdiocese group, $30 million from settling insurers, and $70 million in anticipated proceeds from the pending sale of Christopher Homes, an affiliated portfolio of low-income elderly senior housing. Additionally, the Plan established unprecedented and robust child protection and abuse reporting policies and procedures.

The Plan was supported by 99% of the 650 abuse survivors, as well as commercial creditors and bondholders. The Court overruled the objections to the Plan asserted by The Travelers Group, the Archdiocese’s largest insurer. Subsequent to confirmation, a settlement with Travelers was announced that will generate an additional $75 million to the settlement trust, resulting in a total trust recovery of $305 million.

The Plan became effective on December 26, 2025, with the initial $130 million from the Archdiocese and its affiliates deposited into the settlement trust, which will be overseen by an independent trust administrator. An independent claims evaluator (who was selected by survivors) will begin evaluating abuse claims to determine shares of the settlement trust and paving the way for payments on the claims, likely in the second quarter of 2026.

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