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New Orleans Archbishop Gregory M. Aymond celebrates an Easter Mass which was livestreamed from St. Louis Cathedral St. Louis Cathedral April 12, 2020, during the coronavirus pandemic. The archdiocese filed for Chapter 11 reorganization May 1. (CNS photo/Kathleen Flynn, Reuters)
May 1, 2020
Catholic San Francisco
The Archdiocese of New Orleans announced today that it has filed for Chapter 11 reorganization under the U.S. Bankruptcy Code, "in order to continue effectively ministering to the needs of the church community and victims and survivors of clergy abuse."
A statement on the archdiocese's webiste said the move "was necessitated by the growing financial strain caused by litigation stemming from decades-old incidents of clergy abuse as well as ongoing budget challenges.The unforeseen circumstances surrounding COVID-19 have added more financial hardships to an already difficult situation."
The action affects only the archdiocesan administrative offices and will not affect individual church parishes, their schools, schools run by the various religious orders or ministries of the church.
In a letter to the clergy, religious, and laity of the archdiocese, Archbishop Gregory M. Aymond said the voluntary filing will allow the archdiocese to implement a financial reorganization plan that prioritizes the continuance of the ministry of Christ.
“I, along with a team of advisors, believe that reorganization will create an opportunity for us to renew our commitment to God’s people and the New Orleans community by restructuring our financials and creating a path forward in hopes that we can continue and strengthen our core mission: bringing Christ to others," Archbishop Aymond said.
The archdiocese said the intention of the filing is to allow time to develop a reorganization plan detailing how available assets and insurance coverage will be used to settle outstanding claims and to negotiate reasonable settlements while enabling the administrative offices to continue and emerge better prepared for the future.
The reorganization will also allow the archdiocese to address remaining clergy abuse cases in a way that will allow funds to go directly to victims instead of funding prolonged, costly litigation.
“I strongly believe that this path will allow victims and survivors of clergy abuse to resolve their claims in a fair and timely manner,” Archbishop Aymond said. “No parish funds will be used to settle claims. It is a pastor’s responsibility to decide how parish funds should be used to support parish ministry and this process preserves that principle.”