The New Orleans Archdiocese has filed for Chapter 11 bankruptcy as the institution is facing mounting legal costs caused by litigation stemming from decades-old incidents of clergy abuse. Archbishop Gregory Aymond says the shutdown of church services because of COVID-19 has added more financial hardships.
“After much prayer and consultation with trusted advisors we’ve made the difficult decision to pursue Chapter 11 reorganization,” said Aymond.
Aymond says the action will not affect individual church parishes or their schools.
“Filing for Chapter 11 does not mean the Archdiocese is closing, we will certainly continue to pay our bills responsibly, this only affects the Archdiocesan administrative offices,” said Aymond.
Officials say no parish funds will be used to settle claims.
Aymond says the filing helps them develop a reorganiziation that will figure out how to use available assets and insurance coverage to settle outstanding clergy sexual abuse lawsuits.
“My daily prayers is that this process brings about healing for all those who have been harmed as a result of clergy abuse, the healing of victims and survivors remains very, very important to me,” said Aymond.
Comments