ALBANY – The Roman Catholic Diocese of Albany has filed for Chapter 11 reorganization bankruptcy amid Child Victims Act settlements, the diocese announced Wednesday.
The filing impacts the diocese only, officials said. Parishes and Catholic schools are incorporated separately.
“We maintain global mediation would have provided the most equitable distribution of the Diocese’s limited financial resources,” Bishop Edward B. Scharfenberger said in a statement, “but as more Child Victims Act (CVA) cases reached large settlements, our limited self-insurance funds which have been paying those settlements, have been depleted. The Chapter 11 filing is the best way, at this point, to ensure that all Victim/Survivors with pending CVA litigation will receive some compensation.
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@dgazette Amid Child Victims Act lawsuits, Albany Diocese files for Chapter 11 reorganization bankruptcy – 3/15/23 #diocese #catholicdiocese #bankruptcy #chapter11 #albany #albanyny #childvictimsact ♬ original sound – Daily Gazette
“The decision to file was not arrived at easily and I know it may cause pain and suffering, but we, as a Church, can get through this and grow stronger together,” Scharfenberger’s statement concluded.
The filing now means legal actions against the diocese will stop as it develops a reorganization plan to determine available assets, the diocese said. They will do so with its insurance carriers to negotiate reasonable settlements with victims/survivors and other creditors.
The diocese also noted that the filing puts on hold the St. Clare’s pensioner lawsuits, though that was not the diocese’ purpose, the diocese said.
This story will be updated
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