Latest news with #GregoryAymond
The Guardian
18-06-2025
- Business
- The Guardian
New Orleans archdiocese bond investors accuse church of ‘securities fraud'
The Roman Catholic archdiocese of New Orleans is planning to default on paying a nearly $1m interest payment on more than $41m in bonds it sold in 2017, leading lawyers for the people who purchased the church's debt to allege in open court that it had engaged in 'the definition of securities fraud'. An attorney for the archdiocese countered that the allegation is 'an extreme stretch'. But whatever the case, the dispute pitting the US's second-oldest Catholic diocese against the holders of revenue bonds refinancing debt that the New Orleans church took on to rebuild after Hurricane Katrina could complicate efforts to settle a federal financial reorganization that is otherwise largely centered on more than 600 clergy abuse claimants. Lawyers for investors who purchased the church's debts on the bond market made the securities fraud accusations in front of US bankruptcy judge Meredith Grabill on Friday. Bondholder attorney Colleen Murphy said various archdiocesan representatives – including archbishop Gregory Aymond, vicar of finance Patrick Carr and church-hired bankruptcy lawyer Lisa Futrell – had said in the press and on calls with bondholders that the archdiocese would 'pay 100%' of its debts despite filing for chapter 11 protections. Murphy added that the archdiocese reassured bondholders by citing its obligation to comply with canon, or church, law to 'pay all your debts in full when they come due'. Yet on 6 June, on the official website for municipal securities data and documents, the archdiocese notified its revenue bond holders – who are investors in public securities – that the organization would not make a $930,206.25 interest payment due on 1 July. The notice mentioned a proposed bankruptcy settlement – which had not gained approval at the time of Friday's hearing – and how the archdiocese did 'not intend to seek the reinstatement of the bonds' in light of the settlement proposal. In its own notice on the same municipal securities website on Tuesday, Murphy's office told bondholders that the church would try to lower lower the value of their investment through the settlement – though how much 'remains unclear'. Murphy's colleague, Christopher Marks, on Friday told Grabill that he was worried the archdiocese might try to argue it is insolvent. Marks said that would create several issues. He didn't elaborate, but – because the archdiocese is technically a nonprofit– Grabill has previously said she can't force the group into liquidation, which would involve shutting the organization down and selling off its assets to pay back its debts. As part of required financial disclosures, the archdiocese in November estimated its liquidation value would be $315m, with $158m of that already obligated – leaving only $122m available for abuse survivors and others owed by the church. The notice from Murphy's office said her side had 'retained a law firm to advise it on potential causes of action related to possible violations of securities laws against the archdiocese and other parties'. Murphy was more blunt when speaking with Grabill, saying: 'I'm here to tell you that's the definition of securities fraud.' She suggested in other contexts it was OK to attribute a reneged promise to 'wishful thinking' that collapsed under the weight of reality – 'but you say that to the bond market, [and] it's securities fraud'. Marks echoed her in his own remarks to Grabill, saying: 'Statements … have been made throughout this case … directly to bond holders, to the public, to the market … that their claims will be paid in full. 'We're talking about securities fraud.' Murphy said many of the bond buyers who stand to be affected by the church's decision to halt the 1 July interest payment are Louisiana citizens. 'They're almost definitely … parishioners,' Murphy said. 'These are the people they've cut off.' In court, a bankruptcy attorney representing the archdiocese, Mark Mintz, accused Marks and Murphy of 'kind of randomly … spouting out accusations'. He called their claims 'an extreme stretch that really has no basis'. A statement from the archdiocese added in part that the church 'strongly disagrees with the inflammatory statements made by the [bondholders'] attorneys in court'. Sign up to Headlines US Get the most important US headlines and highlights emailed direct to you every morning after newsletter promotion Noel Boeke, a bankruptcy attorney based in Tampa, Florida, who is not involved in the New Orleans case, said the dispute over the bond debt may be little more than 'posturing' as the church and its creditors try to confirm a settlement to end a contentious bankruptcy that started in May 2020. 'It would not be unusual for an entity in bankruptcy to have difficulty paying its bond obligations,' Boeke said. 'These kinds of pre-confirmation skirmishes are everyday meat and potatoes stuff in bankruptcy court.' He said the biggest hurdle for the archdiocese is to get a final agreement with abuse survivors, which, if the currently proposed plan is approved by two-thirds of the claimants, would pay them $180m. The outstanding bond debt – which stood at $37.9m when the archdiocese filed for bankruptcy protection – is smaller by comparison, and Boeke said he would be surprised if that held up a final settlement deal. Another potential stumbling block: a November 2020 agreement for the church to continue paying interest to bondholders despite the bankruptcy's being unresolved does not allow the church to sell more than $20m in real estate assets – a provision meant to ensure there was enough collateral in case the archdiocese defaulted on the debt. The proposed bankruptcy settlement calls for selling a collection of apartment complexes that had previously received an offer of about $150m from a prospective buyer. The offer was not accepted at the time. New Orleans's archdiocese filed for bankruptcy protection in an attempt to limit its financial exposure in connection with the worldwide Catholic church's decades-old clergy molestation scandal. But the church doesn't only owe payments to abuse survivors once its financial reorganization is complete – it also owes other creditors like the bondholders. At the time of the church's bankruptcy filing, Louisiana – which includes New Orleans – generally prohibited molestation survivors from pursuing civil damages for long-ago abuse. Yet the state removed that prohibition with a law which took effect in August 2021 and was upheld as constitutional by Louisiana's supreme court in June 2024. Meanwhile, in a sworn statement filed in criminal court in April 2024, Louisiana state police revealed that they were investigating whether the New Orleans archdiocese ran a child sex trafficking ring responsible for the 'widespread … abuse of minors dating back decades' that was hidden from authorities for many years. A bloc of attorneys representing hundreds of clergy abuse survivors have expressed opposition to the pending settlement agreement, saying their clients deserve in the neighborhood of $300m. The settlement proposal is expected to be discussed at a hearing in Grabill's courtroom scheduled for 26 June.
Yahoo
04-06-2025
- Climate
- Yahoo
‘Blessing of the Fleet' ceremony held in New Orleans at start of Hurricane Season
NEW ORLEANS (WGNO) — The Archdiocese of New Orleans is doing its part to make sure New Orleans' first responders and their equipment are ready for hurricane season. This is the annual 'Blessing of the Fleet' event at the New Orleans Police Department's 'Special Operations Division' on Tchoupitoulas Street. NORD Splash Day summer kickoff Archbishop Gregory Aymond blessed first responders from multiple agencies. The archbishop also recognized the agencies for their response to other disasters throughout the year, including the New Year's Day terror attack on Bourbon Street. 'They're humans, and they risk their lives, like they did on Jan. 1 and throughout the hurricane season, especially after a hurricane. So we very much depend on them and expertise. We need them, and that's what we want to say today: we not only need you, but we pray for God's protection upon you and all that you do,' said Aymond. The blessing also marked the upcoming 20th anniversary of Hurricane Orleans police searching for suspect in St. Claude art heist Three arrested in St. John Parish drug bust OPSO discusses funding needs for jail repairs with city council 'Blessing of the Fleet' ceremony held in New Orleans at start of Hurricane Season NORD Splash Day summer kickoff Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Guardian
24-05-2025
- Politics
- The Guardian
New Orleans archbishop appears in court during contentious clergy sexual abuse bankruptcy case
The Catholic archbishop of New Orleans made a rare in-person appearance in federal bankruptcy court on Friday, days after announcing a potential agreement to settle claims with hundreds of clergy abuse survivors that has been met with pushback from some of the plaintiffs. 'I'm here because I'm concerned for the survivors,' Gregory Aymond said in an interview with WWL Louisiana away from the cameras after what is believed to have been his first appearance in person for an open court hearing in the five years since his archdiocese – one of the US's oldest – joined roughly 40 Catholic institutions to file for bankruptcy protection amid the worldwide church's long ongoing clergy molestation scandal. 'And we want to make sure it's reasonable expectations for what we can give them and to make sure the process proceeds.' But James Adams, a survivor of child sexual abuse by a Catholic priest stationed in New Orleans and the former chairperson of a committee representing survivors, questioned why Aymond hadn't shown up to previous hearings. 'If he was concerned for survivors, truly, I think there would have been a lot of things done differently from the beginning, unfortunately,' Adams said. Aymond also acknowledged that the bankruptcy he filed for the archdiocese on 1 May 2020 has dragged on too long and prevented abuse survivors from being compensated. 'We want that wait to end as soon as possible,' Aymond said. '[Survivors] have had terrible crimes committed against them, and we want to make sure to respect them and the pain they've been through. One way to do that is to expedite negotiations.' Aymond declined to answer additional questions or to comment on camera outside the courthouse. He didn't say anything in court on Friday either – but sat and listened quietly from the gallery as attorneys representing about 200 of the 600 abuse claimants blasted the settlement plan proposed days earlier, including one who called the deal 'dead on arrival'. Since the basic outline of the proposed settlement was announced on Wednesday, proponents and opponents have been jockeying for position and laying the groundwork for a vote by all claimants to confirm or reject it, which is expected this fall. Two-thirds of everyone making a claim in the church's bankruptcy must agree to the settlement terms for it to be finalized. The full details of the deal proposed on Wednesday haven't been presented yet. But it would provide $130m in cash and up to $110m more from insurance carriers and potential church property sales. That's about $100m short of a similar church bankruptcy case in Long Island, New York, cited by both sides as a good precedent for the New Orleans case, which was recently settled and finalized for $323m. The Long Island settlement, between the archdiocese of Rockville Centre and about 600 abuse survivors, netted the claimants there an average of about $540,000. Under the terms disclosed this week, survivors in New Orleans would get between $300,000 and $383,000 per claim, on average. The amount paid to each claimant depends on a formula based on the severity and evidence of abuse, among other factors. Even after five years, both the church and negotiating survivors say they still need more time to hammer out details before bringing the proposed agreement to an official vote of all 600 survivors and other creditors. The attorneys who spoke against the proposal in court on Friday – Soren Gisleson and Taylor Townsend – said they and associated attorneys represent more than 180 survivors, and they believe there are others who are as dedicated to voting to stop the deal. They hope to return their clients' cases to individual lawsuits for damages against the church in state court, which were stopped five years ago when the church sought bankruptcy protection. 'This deal is never going to get passed,' Gisleson said in front of Judge Meredith Grabill. 'They don't have the votes. And they're never going to get the votes.' Jim Stang, the lead attorney for the survivors' committee that negotiated the proposed deal, bristled at those assertions, saying he's handled many other complex bankruptcies, including the Rockville Centre archdiocese on Long Island – and the proposal this week was something the two sides could build on. 'This is far from over. This is a starting point,' Stang said. In an interview with WWL, Adams said: 'The starting point, if my math is correct, was five years ago.' Rick Kuebel, another attorney for the survivors' negotiating committee, estimated it could be late August before a final plan could be presented for a vote. It would then take two months to properly notify survivors and hold a vote, attorneys said Friday. Judge Grabill suggested an accelerated timeframe might be possible, and Kuebel said that could bring a final settlement to a vote by September at the earliest. Douglas Draper, attorney for the church's parishes, schools and other affiliates, suggested checks could go out to survivors in the first quarter of 2026 if a plan is approved.
Yahoo
22-05-2025
- Business
- Yahoo
Archbishop Aymond announces memorandum of understanding
NEW ORLEANS (WGNO) — Archbishop Gregory Aymond announced a memorandum of understanding that he says could bring the Archdiocese's bankruptcy to a close. Aymond says the MOI is with the 'Official Committee of Unsecured Creditors,' a group that represents survivors of sex abuse in their claims against the Catholic Church. Attorney General Murrill and District Attorney Jason Williams tour Orleans Parish Jail Aymond did not release any details of the agreement and adds the plan must still be confirmed in federal bankruptcy court. He says he hopes it will lead to healing for local survivors, churches and the searching for Jeep thieves caught on camera These are the key last-minute changes to Trump's 'big, beautiful bill' Saints rookies experience crawfish during Touchdown Club's 51st annual 'Super Boil' How much is in the state's checkbook? Some good news and uncertainty Shreveport police crackdown on squatters with operation blue Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Washington Post
22-05-2025
- Business
- Washington Post
New Orleans Archdiocese agrees to pay nearly $180M to victims of clergy sexual abuse
NEW ORLEANS — The Archdiocese of New Orleans has agreed to pay nearly $180 million to victims of clergy sexual abuse under a settlement announced Wednesday, the latest in a string of settlements by the Catholic Church . The archdiocese, its parishes and several insurers will pay $179.2 million into a trust to benefit survivors, according to a statement by the committee that negotiated the agreement. The money will be distributed after the church emerges from bankruptcy, it said. The deal also includes what the statement called 'unprecedented' provisions and procedures to safeguard against future abuse and provide services to survivors, including a survivors' bill of rights and changes to the Archdiocese's process for handling abuse claims. 'I am grateful to God for all who have worked to reach this agreement and that we may look to the future towards a path to healing for survivors and for our local church,' Archbishop Gregory Aymond said in a statement. The agreement, which would settle a lawsuit filed in 2020, still requires approval by the bankruptcy court, abuse survivors and other Archdiocese creditors. The suit involves more than 500 people who say they were abused by clergy. The case produced a trove of church records said to document years of abuse claims and a pattern of leaders transferring clergy without reporting their alleged crimes to law enforcement.
