Reorganization Plan Filed in Diocese of Winona Chapter 11 Bankruptcy Case
(Winona, MN) – Today in the United States Bankruptcy Court for the District of Minnesota, the Diocese of Winona filed a reorganization plan incorporating a $28 million settlement in principle between sexual abuse survivors, the Diocese, and some of the major insurance carriers in the case. The settlement is comprised of approximately $21.5 million from the Diocese and an additional $6.5 million funded by insurance. One of the largest insurers in the case, US Fire, did not reach a settlement and is not included in the plan.
“This is an important day for the survivors,” said Jeff Anderson, attorney for many of the Winona survivors. “Throughout this process, all of the survivors have demonstrated tremendous courage and patience. Today they finally get to see some accountability for the harm they suffered so many years ago.”
The Diocese of Winona filed for Chapter 11 bankruptcy in November 2018. It is the only Diocese in Minnesota that has not yet resolved claims filed against it by approximately 145 sexual abuse survivors under the Minnesota Child Victims Act, and the only Minnesota diocese still in bankruptcy. The reorganization plan filed today is subject to approval by the Bankruptcy Court and a subsequent vote by the survivors in the case. The plan provides for continued litigation against the non-settling insurers such as US Fire.