The United States Bankruptcy Court for the District of New Jersey has approved the plan of reorganization proposed by the Diocese of Camden, New Jersey, and the Official Committee of Tort Claimant Creditors. The plan provides for the establishment of a trust for the benefit of survivors of sexual abuse.
The trust will be funded with $87.5 million in cash—the second largest cash payment by any Catholic diocese in bankruptcy to date—in addition to an assignment of insurance rights expected to yield many millions more to compensate survivors. The settlement also contemplates the implementation of enhanced protocols for the protection of children which were first implemented by the Diocese in 2002.
Counsel for the Committee, Jeffrey D. Prol, partner and Vice Chair of Lowenstein’s Bankruptcy & Restructuring Department, said: “The Committee is pleased that the Bankruptcy Court confirmed the Plan of Reorganization it negotiated with the Diocese and fought tirelessly to have approved. We look forward to facilitating an expeditious distribution to survivors of sexual abuse, who have been, and remain, the real heroes in our battle to bring some semblance of justice for them.”
The Lowenstein team included Prol, Lynda A. Bennett, Michael A. Kaplan, Brent Weisenberg, Colleen M. Restel, and Rasmeet K. Chahil.
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