Dioceses Seek Settlement Trusts Amid Bankruptcy Challenges
Dioceses across the United States are advocating for creditors to consider accepting settlement trusts funded in part by all parishes within the dioceses. This approach is viewed as a preferable alternative to the complete liquidation of diocesan assets through Chapter 7 bankruptcy, which some creditors have pursued.
Efforts to Reduce Property Holdings
The Archdiocese of New Orleans is taking measures to reduce its property holdings. Factors such as soaring insurance rates and costly maintenance have strained the ability to maintain the more than 1,400 pieces of property owned by the archdiocese and its apostolates. This initiative also plays a pivotal role in determining the contributions requested from the apostolates.
Commitment to Settlement Trust Funding
Archbishop Gregory Aymond affirmed the archdiocese’s commitment to ensuring that a significant portion of the settlement trust is funded by the assets of the Archdiocese of New Orleans, including proceeds from real estate sales and contributions from insurers. These efforts are aimed at positioning the archdiocese for a more prepared and robust future.
Request for Prayers and Support
In his closing remarks, Archbishop Aymond expressed his daily prayers for the faithful of the Archdiocese of New Orleans and appealed for the community’s prayers for clergy, religious individuals, lay staff, and those involved in supporting the archdiocese during this challenging period. He humbly sought prayers for guidance from the Holy Spirit to lead the ongoing process to a just conclusion.
Bankruptcy Challenges Faced by U.S. Dioceses
Over two dozen U.S. dioceses, including two in U.S. overseas territories, have initiated bankruptcy proceedings, with the majority doing so in the past decade. The significant cost of settling abuse claims has been a primary factor leading many dioceses to declare bankruptcy.
Impact of Statute of Limitations “Revival”
In several U.S. states and territories where the statute of limitations on abuse claims has been temporarily “revived,” multiple Catholic dioceses have confronted bankruptcy due to a surge in new abuse claims during these “revival windows.” In New York, for example, six of the state’s eight dioceses have declared bankruptcy since the state opened a two-year window for old abuse claims in August 2019.
Share on Facebook «||»
Share on Twitter «||»
Share on Reddit «||»
Share on LinkedIn
Socialites calls for probe of child abuse by clergy that Spain church and government refused to investigate: Until now, there has never been an official investigation into alleged abuse by members of the clergy, either by the government in Madrid or by...
Over 1,000 cases of clergy sexual abuse has been found out by Swiss bishop.: Systematic Cover-up in the Church The study brought to light a systematic cover-up within the church, revealing that “Church criminal law was rarely enforced during...
Prizewinning National Eucharistic Revival hymns released for use in parishes: The winning hymn and theme song, which were chosen from among some 177 entries, were announced in August. Composers Diane Mahoney and Kathleen Pluth both...
ISESE CELEBRATION: TRADITIONAL WORSHIPPERS REQUESTED TO POSTPONE THE CELEBRATION FOR SECURITY REASONS: Due to security concerns, Kwara State’s traditional worshippers have been requested to postpone their Isese celebration. Advertisement In a statement signed and released on Monday...
74 people have died in the JHB CBD fire, and relatives are being requested to identify bodies.: Marshalltown, Johannesburg’s hijacked building fire has claimed the lives of at least 74 people. The fire started early on the morning of Thursday, August 31st,...
Baltimore Archdiocese shuts down Mass at city parish after priest abuse scandal: “The difficult decision was made based on the limited number of clergy available for this ministry,” the archdiocese said in its statement. “Regrettably, the decision...
Cameroonian archdiocese launching perpetual adoration at ‘every parish,’ archbishop says: St. John the Baptist Adoration Chapel, Fonchas Street, Bamenda, Cameroon. Credit: Ayuni Emmanuel Father Anthony Bangsi, a parish priest of St. Gabriel’s Parish, Alamatu, said...
Municipalities called to enhance focus on integrated human settlements: The Portfolio Committee on Human Settlements has urged national and provincial governments, together with municipalities, to enhance their focus on the integrated human settlements model...
UN-Habitat expands COVID-19 Prevention in Kenya’s Mathare and Kibera Informal Settlements: Nearly 5,000 school children in two informal settlements in the Kenyan capital are better protected against COVID-19 as a result of an UN-Habitat initiative to...
Kubayi orders improved services in Nelson Mandela Bay informal settlements: Human Settlements Minister Mmamoloko Kubayi has given the Nelson Mandela Bay Metropolitan a directive to provide informal settlement dwellers with adequate human rights services, including...