Bankruptcy plan confirmed for Rochester Diocese sets up nearly $257 million settlement fund

After nearly six years, fund established for abuse survivors

Bishop Salvatore R. Matano of Rochester, N.Y., is pictured in a 2019 photo speaking during a news conference at the pastoral center in Rochester. On Sept. 5, 2025, U.S. Bankruptcy Judge Paul R. Warren signed an order confirming the Eighth Amended Joint Plan for Chapter 11 Reorganization of the Diocese of Rochester. The judge's action closes the bankruptcy case and establishes a $256.35 million settlement fund for abuse survivors. (OSV News photo/Jeff Witherow, Catholic Courier) (Courtesy photo of Jeff Witherow)

ROCHESTER (OSV News) -- "Thank you, Lord!" a gentleman in the gallery blurted out as U.S. Bankruptcy Judge Paul R. Warren announced he was putting pen to paper Sept. 5 to sign an order confirming the Eighth Amended Joint Plan for Chapter 11 Reorganization of the Diocese of Rochester.

After five years and 50 weeks, the judge's action closes the bankruptcy case and establishes a $256.35 million settlement fund for abuse survivors.

In a written statement issued just after the plan was confirmed, Bishop Salvatore R. Matano expressed his concern for abuse survivors, noting that "years of waiting (for resolution of the case) have added to the suffering and pain of those sexually abused and whose trust was betrayed."

"With profound sadness, I apologize to the survivors, the victims of such sinful and tragic acts for which they were not responsible. The Diocese has accepted responsibility for the damage caused by abuse," the bishop continued. "I ardently pray that this conclusion will bring to the survivors, and to our Diocesan family, peace, healing tranquility, and, please God, a renewed restoration of faith in Jesus Christ, who never abandons us, especially in our darkest hours, and heals hurts where humanity fails."

Now that the court has approved the plan, the Rochester Diocese and the other involved parties "will be working expeditiously to ensure that its settlement provisions can be effectuated and implemented as soon as possible," Bishop Matano said.

"These final steps," he said, are expected to be completed in the coming weeks. Of the settlement amount, $55 million will be funded by contributions from the Diocese of Rochester and its affiliated entities and the remaining amount will be funded by insurers, the bishop said.

As part of the joint plan, the diocese, its parishes and certain other Catholic organizations also have committed to carry out a number of nonmonetary actions, many of which relate to the prevention of child abuse.

Several of the commitments pledge continuing diocesan adherence to policies the Diocese of Rochester has had in place for more than 20 years, in accordance with the U.S. Conference of Catholic Bishops' 2002 "Charter for the Protection of Children and Young People," Father Daniel Condon, diocesan chancellor, told the Catholic Courier, Rochester's diocesan news outlet.

Such policies prohibit diocesan clergy, employees and volunteers from being alone with unrelated minors. They also require all diocesan clergy, employees and volunteers to undergo background checks, sign codes of conduct and periodically complete diocesan Creating a Safe Environment training.

While these policies are not new to the Diocese of Rochester, including them in the bankruptcy resolution as non-monetary commitments further enshrines them, Father Condon said. "They're part of the culture that we've tried to embrace and maintain."

The diocesan website already includes a section offering instructions about what people should do if they suspect child abuse, but the diocese has committed to placing this information in an even more prominent place on the website, Father Condon said. The first step, he added, is always reporting suspected abuse to the civil authorities.

The bankruptcy plan also includes some new commitments that will be evident to parishioners, such as the installation of plaques in each church and school in use. These plaques will point out the parish or school's strong commitment to the emotional, physical, spiritual and moral well-being of all its members, "stating very clearly that abuse of any kind will not be tolerated," Father Condon said.

A number of the nonmonetary commitments relate to transparency as a means of promoting further healing and reconciliation and of preventing future sexual abuse of children, according to a document outlining the commitments.

Another commitment asserts that the diocesan bishop will be available for private conferences with survivors, as he always has been, Father Condon said. Another commitment documents the release from confidentiality agreements of people who previously had signed such agreements as parts of settlements related to child sexual abuse, he said.

Yet another commitment encourages compassionate treatment of abuse claimants or plaintiffs, he added.

In his statement, which was a letter to the faithful, Bishop Matano said that when the diocese filed for bankruptcy under Chapter 11, "it was not anticipated that this would be a six-year process." He assured them of his prayers and asked them to keep him in their prayers.

"Despite this lengthy process, bankruptcy was the only means possible to assure that all survivors would be justly compensated, and the best and fairest course of action for the continued mission of the Diocese, its parishes and related entities," he said.

"I am particularly conscious that these years of waiting have added to the suffering and pain of those sexually abused and whose trust was betrayed," he continued. "Betrayal is a harsh word, but its effects are far more harsh."

Bishop Matano said he "will continue to be available to meet with the survivors who so wish to offer my personal support."

He thanked God for his diocesan brothers and sisters, "who have remained faithful in this unprecedented tribulation, which has tested, and even wounded, our faith. How well we understand the need for Jesus to help us carry our crosses."

In this Jubilee Year of Hope, Bishop Matano said, he relies "upon the virtue of hope, the hope which transformed the tragedy of Golgotha into the joy of Easter Sunday. ... I pray our survivors and their families find hope in this resolution and can continue to rebuild their lives with the same courage they have exhibited in this entire process."

"I pray for hope in the hearts of all our people," he continued, "as we begin a new chapter in our Diocese with the firm conviction and dedication to the mission entrusted to the Church by Jesus Christ and to do everything possible to assure this very sad period in our Diocesan history will never again be repeated."

He urged prayers "for our many priests who have served and continue to serve so faithfully."

"They have seen the beauty of their vocation they so cherish terribly damaged," he said. "At the same time, they do have a genuine shepherd's heart for the survivors of abuse and have been, in some instances, ministers to them.

"For those who have committed these grievous acts, I entrust them to Jesus, the final judge, and I pray they have acknowledged their offenses and used their remaining years to seek His mercy and have prayed fervently for those whom they have hurt."

Karen M. Franz is general manager/editor of the Catholic Courier, news outlet of the Diocese of Rochester. Contributing to this story was staff writer Jennifer Burke. This story was originally published by the Catholic Courier and is distributed through a partnership with OSV News.