Judge Approves Diocese of Camden Reorganization Settlement Plan 

After Decades, Survivors Voices Bring Reckoning to the Catholic Bishop of Camden

(Camden, NJ) – Today, Judge Jerrold Poslusny confirmed the Third Modified Plan filed by the Diocese of Camden and the Committee of Unsecured Creditors, sealing the settlement made by the Diocese and survivors. The Plan was approved despite objections from several insurance companies who did not contribute to the deal. The Plan, which was submitted by the Diocese and the Survivors’ Committee, received the support of 99% of the survivors who voted in the bankruptcy case. Over the last months, the Judge has required modifications to the Plan to ensure that it meets legal requirements, leading to today’s decision.

“This moment comes after decades of survivors suffering, and it is their courage and their voice that is making the Diocese accountable and safer for kids. It is the survivors deserving of credit, who courageously stand in Camden and across this nation. From their courage and collective action, brings about real reckoning.” – Jeff Anderson

Background

The Diocese of Camden filed for Chapter 11 bankruptcy on October 1, 2020, under the mounting pressure of child sexual abuse lawsuits filed under the New Jersey Victims’ Rights Bill. The survivors worked to try to resolve the case for numerous months. Then without any input or participation from the survivors, the insurance companies and the Diocese of Camden attempted to force a resolution of the case on the survivors. On February 2, 2022, the insurance companies and the Diocese filed a plan of reorganization seeking to cut off the rights of all survivors.  The survivors fought vigorously against the insurance companies and Diocese’s efforts. Ultimately that led to the survivors reaching a settlement with the Diocese and its parishes that would pay survivors $87.5 million, establish enhanced child protection measures in the Diocese and allow the survivors to pursue the insurance companies which refused to honor their insurance obligations.