Connecticut diocese's $31 million settlement for abuse survivors approved

By Mia MacGregor

May 22 - (The Insurer) - A U.S. bankruptcy court judge has approved the Diocese of Norwich’s Chapter 11 joint plan of reorganisation, establishing a settlement fund of $31 million to compensate survivors of sexual abuse, some of which will be funded by insurance.

The approval marks the official emergence of the Norwich Roman Catholic Diocesan Corporation from Chapter 11 bankruptcy.

The $31 million settlement fund comprises contributions from diocesan assets, proceeds from the sale of diocesan properties, non-debtor assets and properties, insurance contributions, and other sources.

Additionally, estate professionals involved in the bankruptcy case have agreed to a 10% reduction in allowed fees as a contribution to the settlement fund.

The joint plan received near-unanimous support from voting creditors and survivors, with almost all voting survivors having executed releases.

“Our hope is that this settlement provides a fair measure of compensation and an opportunity for healing,” said Bishop of Norwich Richard Reidy.

In April, the Roman Catholic Diocese of Syracuse, New York, reached a roughly $60 million settlement with six insurance companies to help fund compensation for abuse survivors, as part of its proposed plan to exit bankruptcy.