October 11, 2021
Diocese of Camden Submits Chapter 11 Plan of Reorganization
CAMDEN — On October 12, The Diocese of Camden will submit a Plan of Reorganization with the United States Bankruptcy Court – District of New Jersey. The plan can be found via https://cases.primeclerk.com/camdendiocese. This plan is submitted just a few days past the one-year anniversary of the Diocese filing for Chapter 11.
During the past year, the Diocese has worked diligently and openly with the Bankruptcy Court for the primary purpose of the fair, equitable, and expedient resolution of all diocesan priest sex abuse claims while also ensuring that diocesan ministries can continue to provide their needed services to the people of South Jersey. The Diocese has produced thousands of documents which reflect full transparency as to all aspects of the Diocese and its operations.
The plan submitted to the Court ensures that abuse survivors will see financial payment as soon as possible, ideally, as soon as later this year.
It is the Diocese’s hope that this plan will be accepted by the Court expeditiously, as continued delays will only further exhaust the Diocese’s funds. During the course of the last year, this Chapter 11 case has caused enormous legal fees exceeding $7 million – money no longer available to victims. This is over and above the $11 million dollars paid to victims from the mid-1990’s to late 2010’s and the $8 million that has been paid to survivors through the Diocese of Camden’s participation in New Jersey’s Independent Victim Compensation Program (IVCP) in 2019.
Approximately 300 survivor claims were filed as of the June 30 bar date and have now been fully analyzed by all parties. Most claims date back decades. Considering the age of the victims involved and the willingness of all parties to bring these claims to a conclusion, providing monies to survivors now is necessary and appropriate.
Unfortunately, despite hundreds of hours of mediation between the Diocese and the Claimants Committee, no reasonable committee proposals have been offered to finalize these matters. The point has been reached where survivors should have the choice to accept compensation now.
The Diocese’s proposal offers $26 million to create a survivors plan, though that plan could increase to approximately $40 million if survivors choose to accept tax-free payments over seven years. These amounts are substantial and consistent with the IVCP claim amounts.
The IVCP was created in 2019 by all five New Jersey dioceses. It settled 71 Camden claims, which were ALL paid in full. The IVCP is administered independently by Kenneth Feinberg, Esq., a world-renowned attorney who handled the distribution of funds for the 9/11 victims, Newtown, Connecticut massacre victims and Boston Marathon bombing victims. Mr. Feinberg’s analysis and determination of claims related to the Camden Diocese averaged approximately $112,500.
Historically, the Diocese of Camden has always made every effort to support victims of priest abuse. Bishop Dennis Sullivan has continually offered to meet with any survivor and implemented many safeguards so that the horrific past conduct never occurs again. It is important to note that the last reported incident of priest abuse of a minor occurred in the mid-1990’s.
In addition, the financial effects of the COVID-19 pandemic continue to impact the Diocese, all parishes, and the greater community served by the Diocese. This has forced many austerity measures, including layoffs.
However, despite negative financial effects of the pandemic, the Diocese remains committed to providing needed services to the Catholic faithful, via its ministries, schools, and social service ministries and all persons in southern New Jersey. The Diocese’s commitment to survivors of priest abuse is equally as strong. With the implementation of the Diocese’s plan of reorganization, survivors will have another element towards closure.