OFFICIAL CREDITORS COMMITTEE OF ARCHDIOCESE OF SANTA FE REACHES SETTLEMENT OF SEXUAL ABUSE CLAIMS AGAINST ARCHDIOCESE OF SANTA FE

LOS ANGELES, May 17, 2022 /PRNewswire/ -- After more than three years of intense work, the Official Creditors Committee ("OCC"), the fiduciary for all Survivors in the Chapter 11 case of the Archdiocese of Santa Fe ("ADSF"), has negotiated a settlement of the sexual abuse claims filed against the ADSF. The OCC is represented by Pachulski Stang Ziehl & Jones LLP ("PSZJ"). The settlement provides for a payment of $121.5 million to a settlement trust that will be distributed to approximately 375 Survivors in accordance with a plan of reorganization. The settlement will be funded by the ADSF, its affiliates (including parishes) and the ADSF's insurance carriers. In exchange for the settlement payment, the ADSF will receive a discharge in bankruptcy and the affiliates and the carriers will be released of their liabilities for the sexual abuse claims.

In addition to the monetary settlement, the OCC negotiated for an unprecedented non-monetary agreement with the ADSF to create a public archive of documents regarding the history of the sexual abuse claims against the Archdiocese. The negotiated settlement, which does not include settlement of any claims against any religious orders, will be incorporated into a plan of reorganization that Survivors will have an opportunity to vote on. 

"Through the hard work of the nine members of the Official Creditors Committee, the Archdiocese of Santa Fe has been held accountable to Survivors. The tenacity and courage of New Mexico Survivors empowered us to reach a recommended settlement that addresses the needs of Survivors on a timely basis. The bankruptcy process has been a lengthy one and, at the end of the day, Survivors will receive an unheard of transparency into the history of the Archdiocese's sexual abuse claims and fair compensation," said Charles Paez, Chair of the OCC.

 "The OCC always has stood for fair compensation and transparency. The nine members of the OCC have devoted thousands of hours over three years to getting the right result for all Survivors," said James Stang of Pachulski Stang Ziehl & Jones LLP, bankruptcy counsel to the OCC.

View original content:https://www.prnewswire.com/news-releases/official-creditors-committee-of-archdiocese-of-santa-fe-reaches-settlement-of-sexual-abuse-claims-against-archdiocese-of-santa-fe-301549571.html

SOURCE Pachulski Stang Ziehl & Jones