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Settlement reached in diocesan Chapter 11

By Bishop Terry R. LaValley

May 27, 2026

Dear Sisters and Brothers in Christ,

As you have been aware, we have been faced with making reparations with the survivors of child sexual abuse by clergy, employees, and volunteers representing the Church. We have also worked hard to establish safe environment protocols to prevent this evil from happening again. In July 2023 we filed for Chapter 11 Bankruptcy protection to allow us to reach a global settlement for abuse claims filed under the Child's Victim Act. Today I announced a big first step in forming a Chapter 11 Plan that will lead the Diocese to settle with survivors and emerge from bankruptcy.

The Diocese and the parishes, schools and other Catholic entities within the Diocese (the "Catholic Family") announced on May 19 that an important milestone in the reorganization case has been reached. The Catholic Family has reached a settlement in principle with the Official Committee of Unsecured Creditors (the "Committee"), who represents the interests of the survivors in the Chapter 11 case, under which the Catholic Family will contribute $45 million to a survivor Trust to be formed under a plan of Reorganization (the "Plan") to be developed and proposed jointly by the Diocese and the Committee.

My prayer is that this process and this settlement will bring peace and healing to survivors and to the faithful whose hearts were broken by the gravely sinful conduct of Church leaders and representatives.

While this settlement is a good first step, there is more work to be done. The Diocese and Creditors' Committee will continue to negotiate details of child protection policies and protocols to enhance measures already undertaken by the Diocese to protect young parishioners, students and all people entrusted to the care of the Church. The Diocese of Ogdensburg is committed to ensuring the safety of everyone entrusted to our care. The great harm caused by this heinous sinful behavior must never be allowed to happen again.

Additionally, negotiations will continue with our insurers. Our insurers, upon reaching a settlement in this case, will pay additional funds into the settlement Trust for survivors. When these remaining matters are settled, the Diocese will submit its plan of Reorganization. The Plan will be subject to a vote of all claimants in the Chapter 11 case (including survivors of abuse) and must be confirmed by the Bankruptcy Court before its terms (including payment of the Catholic Family Settlement) will become effective.

Once the Plan is confirmed, the Diocese and its insurers will pay the funds into the settlement Trust, and the Diocese will emerge from Bankruptcy.

My hope and prayer is that this process will bring peace and healing to all survivors. I ask for your continued prayers for all whose lives have been devastated by the behavior of Church leaders.

In addition, please pray for our Diocese and the people we serve. Asking God to bless you abundantly, I am

Faithfully yours in Christ,
Most Reverend Terry R. LaValley
Bishop of Ogdensburg

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