Two weeks after the Diocese of Camden filed its Plan of Reorganization, all of its insurers have reached a settlement with the Diocese and agreed to contribute over $27 million to the Diocese’s proposed Plan of Reorganization. With the assistance of a court-appointed mediator, the Honorable José Linares, United States District Judge (Retired), on Thursday, October 21, 2021, the Diocese and its insurers reached this settlement after 10 hours of negotiation in Newark, New Jersey.
Under the settlement, the insurers will contribute more than $27 million toward a survivor trust to be administered under the Diocese’s Plan of Reorganization.
Substantial progress has been made towards the reorganization process. The Diocese intends to amend its plan to reflect the insurance settlements. The survivor committee has not yet made a bona fide demand.
“Name calling is not negotiating,” said Diocesan lead attorney Richard D. Trenk, Esq. of Trenk Isabel P.C. in Livingston, New Jersey. “There is now $53 million available for survivors. Approximately 300 bona fide claims were filed by the June 30th Bar Date. Everyone has had an opportunity to review the claims and all parties understand the extent of claims, the need to get survivors settlement funds, and the need for the Diocese, parishes and other Catholic entities to move forward in order to serve the faithful and the greater community.”
The Bankruptcy Court has scheduled December 8, 2021 to consider the Diocese’s Plan.