Bankrupt Norwich Diocese Abuse Victims Seek $90 Million Payout

Creditors of the Roman Catholic Diocese of Norwich have proposed a bankruptcy exit plan that could pay as much as $90 million of cash and insurance payouts to resolve child sex abuse claims.

The proposal Tuesday by the committee representing abuse victims sets up a showdown with the Norwich Roman Catholic Diocesan Corp. The church proposed its own reorganization plan in January that calls for paying $29 million to settle about 142 clergy sexual abuse claims.

The looming battle is part of a larger trend involving potentially valuable insurance rights, bankrupt dioceses, and child sex abuse victims. A similar fight ...