Diocese responds to bankruptcy settlement news report
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By Dc. Tom Cuskey, editor
Concern for funding of the Diocese of Syracuse’s planned $100-million bankruptcy settlement as reported by an area news outlet is premature and unnecessary according to diocesan officials.
Syracuse.com reports that a government appointed trustee in the case has raised concerns that the funds to satisfy lawsuits from abuse victims are not in place. The proposed settlement was announced last summer and the report cites financial records from November 2023.
“The article overall was mostly accurate but needs clarification,” according to Danielle Cummings, diocesan Chancellor and Director of Communications. She shared that there are two important points concerning the report.
“The Diocese will have the funds to meet its financial obligation to the Victims Trust,” she stressed. “It is not unusual for the U.S. trustee to raise caution on issues concerning Chapter 11 plan funding requirements.”
Cummings’ second concern involves a pending Supreme Court ruling expected in a case involving Purdue Pharma that could influence how claims in lawsuits are handled. That ruling is expected in June before the close of the current court term. “We are moving forward with our proceedings under current law,” Cummings pointed out.
The Syracuse.com report includes comments from some of the victims’ legal representatives who are not concerned and believe the funding will be in place when the agreement is approved.
Half of the proposed settlement is funded by the diocese, $45-million will be paid through the parishes and the remaining $5 million will be assumed by diocesan entities such as Catholic Charities, the Catholic Sun and others.
