Diocese of Rockville Centre Creditors Committee Files Amended Plan of Reorganization and Disclosure Statement

February 6, 2023


New York, New York – February 6, 2023 - The Official Committee of Unsecured Creditors (“Committee”), the fiduciary for all survivors of child sexual abuse (“Survivors”) in the Chapter 11 case of The Roman Catholic Diocese of Rockville Centre (“DRC”), filed its Amended Plan of Reorganization and Disclosure Statement as it advances its reorganization strategy for DRC. The amended plan includes specific proposals for enhancing the protection of children in the care of DRC and its affiliates. The DRC plan, filed two weeks ago, does not contain a single proposal for improvements to the DRC child protection plan althoughsome of the over six hundred abuse claims arose after the so-called reforms proposed by the U.S. Conference of Catholic Bishops. The Committee also amended its plan to add a protocol for distribution of the DRC cash and assets that would be transferred to a settlement trust and any settlement funds from DRC’s parishes and affiliates and settling insurers.

“The Committee stands for the protection of children, transparency into the Diocese’s history of sexual abuse and fair compensation of survivors. With the filing of the Committee’s amended plan and disclosure statement, the Committee is moving forward towards the realization of all three goals. The plan amendments include concrete proposals for the Diocese to enhance the protection of children in its care. Sadly, the Diocese’s plan reflects a 'business as usual' attitude that is unjust and a threat to today’s kids,” said Richard Tollner, Chair of the Committee.

In response to the Committee’s original plan, the DRC filed its own plan without the support of the Committee. The DRC plan has a minimal financial contribution of $11.1 million from parishes and affiliates (totaling over 300 different entities) who receive a complete release of liability for 600 sexual abuse claims and largely relies on the assignment of potential insurance policy recoveries that the carriers who sold the policies are actively disputing in four lawsuits.

“The Diocese asserts that its plan is fair and equitable because it allegedly may pay more than any other diocese that has gone through bankruptcy. This premise is unconscionable. There is no fair market value for compensating the sexual assault of a child. The Debtor’s insistence on pursuing this reorganization strategy will fail and result only in higher legal fees to no avail,” said James Stang of Pachulski Stang Ziehl & Jones LLP, bankruptcy counsel to the Committee.


Contact: James I. Stang

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