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New Orleans Archdiocese Bankruptcy Trial Opens on $230 Million Abuse Settlement

The ruling will determine if payments to roughly 650 survivors can begin early in the new year.

Overview

  • The three-week confirmation hearing opened in federal bankruptcy court, where Judge Meredith Grabill will decide whether to approve the plan.
  • The court began pulling about 150 parishes, schools, and ministries into a mini-bankruptcy to secure roughly $60 million from affiliates in exchange for liability releases through a channeling injunction.
  • Survivor testimony is set for December 2, with attorneys saying about 10 survivors plan to take the stand, including some who may seek to implicate Archbishop Gregory Aymond.
  • Parish-specific assessments have not been disclosed, but legal fees could reach about $50,000 per parish, and some churches report donors or endowments covering shares, such as St. Dominic’s $50,000.
  • Survivors voted 489–2 to approve the plan, and the archdiocese has said distributions could start around the new year if the court confirms the deal.