The first day of the confirmation hearing in the Syracuse Diocese bankruptcy was held on July 2, 2025. This is a positive step in reaching the resolution of this bankruptcy. Of note, shortly before the hearing started the Official Committee of Survivors and the Traveler’s Insurance Company agreed on a $15 million settlement. This brings a total of nearly $180 Million in financial settlements reached to date. As well, the Diocese has agreed to the Committee’s robust child protection measures. Because of the late settlement with Travelers, it became necessary to revise the settlement documents prior to final confirmation. To do that, the proceedings will continue on August 27. While the delay may be frustrating, it isn’t uncommon in complex bankruptcies. The Committee remains hopeful that this settlement plan, which is overwhelmingly supported by Survivors, will be approved.
Author Archives: Shelby Kostolni
A Victory for Survivors
In what is a victory for all Survivors who find themselves part of a Diocese bankruptcy, a Survivor abused by a Diocese of Winona NY priest has been awarded $7.6 million by a jury. This is an important development because the defendant in the lawsuit was US Fire Insurance, an insurer who chose not to settle with the Official Committee of Survivors in the Winona bankruptcy. Now, that insurer is liable for this settlement and the costs associated with its defense. Further information regarding the Winona decision can be found at Survivor Abused by Diocese of Winona Priest Sees Victory in the Courtroom, Awarded $7.6 Million – Jeff Anderson and Associates
Confirmation Hearing Continued to July 2, 2025 at 10:00 a.m. ET
The Court continued the confirmation hearing to July 2, 2025 to allow the parties additional time to document the insurance settlement agreements that have been achieved and related plan amendments. It is anticipated that the Court will decide whether to approve the plan at that hearing or soon thereafter. The Committee continues to work as hard as it can to achieve confirmation of the plan in accordance with the bankruptcy code to bring a resolution to survivors as soon as possible.
A Note from the Official Committee
The Committee appointed in the Diocese of Syracuse bankruptcy case to advocate on behalf of survivors has noted the election of a new leader of the Catholic Church, Pope Leo XIV. This has raised concerns among some regarding his commitment to the prevention and investigation of sexual abuse in the Catholic Church. This article summarizes those concerns. The Committee wishes to acknowledge those concerns and share that it is fully committed to its work in this case to both achieve a financial settlement for survivors and the adoption of policies that will end sexual abuse within the Catholic Church.