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The Archdiocese of New Orleans has reached a memorandum of understanding with creditors, signaling progress in its ongoing bankruptcy case. Archbishop Gregory M. Aymond informed parishioners of the development through a letter dated May 21, stating that the arrangement "protects our parishes and begins to bring the proceedings to a close." He briefed parish pastors on the tentative settlement and pledged to provide updates as they become available.
Archbishop Aymond addressed abuse survivors directly, assuring them of continued prayers and expressing his desire to meet with them. "Please know that because of your courage in coming forward and your steadfast commitment to preventing the horrors of child sexual abuse, we are a better and stronger Church," he said.
The Chapter 11 filing dates back to 2020 and was triggered by approximately 500 abuse claims. The process has been described by Archbishop Aymond as "a much longer, complicated, and costly process than anyone could have predicted." Legal fees for the archdiocese have surpassed $41 million.
Judge Meredith S. Grabill issued an order on April 28 regarding a potential dismissal of the case due to its contentious nature and failure to reach a reorganization plan after five years. In response to requests from some abuse survivors, Grabill expedited the dismissal inquiry with a preliminary hearing scheduled for May 29.
The archdiocese acknowledged in a statement on May 1 that significant time and money had been spent over the past five years but argued that "dismissal is not in the best interest of all survivors." Grabill noted in her April 28 order that lengthy legal proceedings are common in complex mass-tort cases but emphasized growing impatience given several status conferences and appointments made to advance the case.
In September 2023, Archbishop Aymond advised parishioners about contributing financially towards settlements. Additionally, efforts to resolve sex abuse claims have included various legal actions such as:
- The recusal of a previous judge handling the Chapter 11 case.
- The guilty plea and life sentence of Msgr. Lawrence Hecker for crimes committed during 1975-1976.
- An investigation by Louisiana State Police and FBI into alleged cover-ups involving clergy sex trafficking.
A search warrant related to this investigation was issued in May 2024, confirming ongoing inquiries as stated by Louisiana State Police Public Information Officer Jacob Pecheu. OSV News awaits further comments from the archdiocese regarding this matter.
Between 2004 and 2024, U.S. Catholic dioceses collectively paid more than $5 billion settling abuse claims according to OSV News findings.
Gina Christian reports for OSV News; follow her on X @GinaJesseReina
