Norwich Diocese Survivors to Propose Competing Bankruptcy Plan

Sex abuse claimants of the Norwich Roman Catholic Diocesan Corp. secured court approval to file their own proposal on how to restructure the bankrupt church operator, teeing up a potential showdown as they seek a higher victim payout.

The US Bankruptcy Court for the District of Connecticut’s Feb. 24 order came as abuse survivors said negotiations with the organization over how to resolve its Chapter 11 case reached an impasse.

The Connecticut diocese recently submitted a proposed plan that would provide about $29 million for the 142 survivors.

But the survivors, arguing that the diocese can pay more, want to ...