Survivors of sexual abuse within the Syracuse Catholic Diocese will receive a part of $100 million in payments through the settlement of the diocese's bankruptcy case.
The settlement between the diocese and a group labeled the Official Committee of Unsecured Creditors was announced Thursday morning, and was reached following the diocese's June Chapter 11 bankruptcy filing. It still needs final court approval.
In a joint statement, the committee and diocese call the settlement "an important first step in forming a chapter 11 plan that will lead to the Diocese's exit from chapter 11" and "a very significant achievement in the case," but note that better child protection plans are still being worked on, with a plan to announce them soon.
The settlement doesn't include money from six insurance companies that have covered the diocese, but the statement said both parties "will continue to work in earnest to negotiate with the insurance carriers who are involved in this case with the goal of achieving a global settlement. In Diocesan bankruptcy cases, it is typical for Church insurers to contribute the majority of the global settlement amount paid to survivors of abuse."