Dear Sisters and Brothers,
This year has seen historic difficulties in South Jersey, in our country and across the world due to the effects of the COVID-19 pandemic to which our diocese has not been immune. The loss of life and the fear of sickness from viral exposure have weighed heavily on each of us. These pandemic ripples have taken many forms, among which has been its effect on the finances of our diocese.
The effects of the pandemic, which have curtailed our revenue and deeply impacted our parishioners and neighbors, were further compounded by the over $8 million we have paid out this year through the New Jersey Independent Victims Compensation Program to victims of clergy abuse, money which we have had to borrow. Additionally, the recent repeal of the statute of limitations has resulted in over fifty lawsuits being filed against the diocese involving long-ago claims of abuse. If it were just the pandemic, or just the costs of the Victims Compensation Program, we could likely weather the financial impact; however, the combination of these factors has made that impracticable. Because of this, today I announce that the Diocese of Camden is filing for reorganization under Chapter 11 of the United States Bankruptcy Code.
I have had to make many decisions in my time as your Bishop, but few have been as considered as this one. With guidance from both the competent lay financial experts of our diocesan Finance Council, and our diocesan Finance Office, as well as input from the diocesan College of Consultors, it became clear that reorganization is the soundest option to provide those who have been abused an equitable share of the funds available, and also to ensure the future financial health of the diocese. The Chapter 11 reorganization is aimed at the maximum fairness and equity possible to address the remaining abuse claims, streamline substantial legal expenses, and avoid the race to the courthouse which would likely cause later claimants to be left without a remedy.
I take some comfort that we are not alone in making this decision, as we have seen that well-known public entities and other Catholic dioceses across the country have been forced recently to do likewise. This decision is intended to allow for the fair compensation of the victims of abuse, the payment of debts to our creditors, and the safeguarding of the assets which make our religious, educational and social service ministries possible.
The reorganization process for a non-profit entity, as we are, is different than for profit-making businesses. We will be working with the Court to ensure that our ministries are protected and that we continue to provide the needed services to so many in our diocese and the greater community we serve. I must emphasize that this decision will have no direct effect on our schools, parishes or pension plans.
The reorganization process is extensive and you likely have many questions that require more detail than this letter can provide. To give you a better idea of the process and what it will entail, we have created a dedicated website at camdendiocese.org/reorganization that offers a detailed FAQ, and links to relevant information and to the publicly available court documents. Our goal is to make this as transparent a process as possible.
Please know that during this time your continued support of our parishes and schools will be even more paramount. They provide services and opportunities that cannot be found anywhere else. They are a refuge in a world which often appears to have turned upside down. Please continue to support them in any way that you can.
As always, the pastoral care of the people of the Diocese of Camden remains my primary concern and responsibility. We undertake this reorganization so that the mission of the Catholic Church in South Jersey may continue for generations to come.
I pray God’s blessings on each of you, and ask from you the same for me.
Sincerely in Christ,
Most Reverend Dennis J. Sullivan, D.D.
Bishop of Camden
October 1, 2020
For More Information
related to this filing, please contact PrimeClerk via the following:
Website: https://cases.primeclerk.com/camdendiocese
Case info email: camdeninfo@primeclerk.com
Case info phone line: Toll-Free: (877) 465-8420; Local: (347) 817-4096