he Archdiocese of Baltimore declared bankruptcy on Friday several weeks after warning it might do so in response to a looming wave of sex-abuse-related lawsuits.
Archbishop William Lori said in a statement on Friday that ”after consulting with numerous lay leaders and the clergy of the archdiocese,” he had made the decision for the archdiocese to file “for Chapter 11 reorganization.”
“With an approved plan under Chapter 11, the archdiocese will be reorganized, victim-survivors will be equitably compensated, and the Church will continue its mission and ministries,” the archbishop said.
The process will “involve several steps over the next two to three years,” Lori said, including “accept[ing] claims from victim-survivors for a specified period of time” and then “enter[ing] negotiations” with those individuals.
The filing, Lori said, is “the best path forward to compensate equitably all victim-survivors, given the archdiocese’s limited financial resources, which would have otherwise been exhausted on litigation.”
“Staggering legal fees and large settlements or jury awards for a few victim-survivors would have depleted our financial resources, leaving the vast majority of victim-survivors without compensation while ending ministries that families across Maryland rely on for material and spiritual support,” he said.
The prelate also made the announcement via a prerecorded video uploaded to YouTube on Friday afternoon.
Read more here. And watch the video below.