Diocese of Norwich files Chapter 11 bankruptcy to resolve lawsuits

By Sarah Lizee

Olympia, Wash., July 15 – Norwich Roman Catholic Diocesan Corp., known as the Roman Catholic Diocese of Norwich, filed for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Connecticut in Hartford on Thursday, according to a statement from the diocese.

The diocese said Chapter 11 will be the most equitable way to resolve numerous pending lawsuits alleging the abuse of students at Mount Saint John School filed against the diocese and a former bishop and certain other creditors’ claims.

Nearly 60 former residents have filed suit for damages that exceed the diocese’s current financial ability to pay.

While seeking to restructure, diocesan operations and ministries will continue without interruption.

“We have worked closely with legal and financial advisors to plan for payment of all post-bankruptcy financial obligations, and to fund normal operations and services during this restructuring process,” the diocese said.

“All employees will continue to be paid their normal wages. Benefit programs will also continue, uninterrupted. Our vendors will be paid for all goods and services and ordinary operations will continue.”

The diocese listed $10 million to $50 million in estimated assets and $50 million to $100 million in estimated liabilities.

The Norwich, Conn.-based diocese filed bankruptcy under Chapter 11 case number 21-20687.

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