Archdiocese Reaches Deal with Bond Trustee; Clears Major Hurdle in Reorganization

As the confirmation hearing in its Chapter 11 Reorganization Bankruptcy case moved through the second week, the Archdiocese of New Orleans announced that through the tireless prayer and work of Archbishop Gregory Aymond and his advisors, it has cleared a major hurdle in reaching an agreement with the Bond Trustee, essentially clearing the path for plan confirmation in early December. Representatives for the archdiocese noted that while they are happy and grateful to complete this phase, their focus remains on survivors as the case moves towards resolution.

“This is a matter of justice,” said Archbishop Aymond. “We must pay our debts. I believe this is the just way to move forward for the good of survivors and the local church. We thank the faithful for their prayers for the past five years and continue to ask for prayers for the survivors of abuse. We trust that through the mercy and love of Jesus Christ the Archdiocese of New Orleans will move forward to continue sharing its mission of sharing the Gospel.”

All sides expressed gratitude that this settlement, which allows for the bondholders to be paid based on mutually agreed upon terms, could be reached.

“The Official Committee of Unsecured Creditors (the Survivor Committee) is pleased that the Archdiocese and the Archbishop have resolved their disputes with the Bondholders to pave the way for confirmation of the Joint Plan in the interests of just treatment and closure for abuse survivors.”

The confirmation hearing will break for Thanksgiving and resume the first week in December. With closing arguments set for December 4.