My dear family in Christ,

Two years ago today, the Diocese of Burlington filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. This decision was made in response to the number oflegal claims pending against the Diocese following the State of Vermont’s removal of the statute of limitations for cases involving the sexual abuse of minors. As I noted in my pastoral letter issued at the time of the filing, I believed bankruptcy was “the only way to establish a process by which victims’ claims are treated in an equitable way.” My hope and prayer were that this process would be completed in an efficient and timely fashion.

Over the last two years, the Diocese has taken steps to sell its available properties to fund a Trust for the benefit of the claimants and it has reduced its employee base by half and reduced its expenditures.

Unfortunately, after two years into this reorganization process we have not made the progress I had hoped for, and we appear far away from a resolution that will compensate the claimants and allow the Diocese to rebuild and move forward into the future. In fact, our legal and administrative expenses are well more than two million dollars, and not one dollar of these funds has been given to a single claimant. These funds represent the costs associated with the legal team representing the Diocese of Burlington, and the legal and professional firms representing the Creditors Committee and claimants, which the Diocese is required to pay for in the Chapter 11 process.

Additionally, recently, the Creditors Committee began an adversarial procedure against the parishes which will almost certainly result in significantly more time to litigate and resolve. In addition to the time it will take, the adversary proceeding will also require the Diocese and Creditors Committee to incur significant legal fees, which again the Diocese would be required to pay. Because of the likelihood of ever-increasing legal costs and the amount of time required to complete the litigation, the Diocese does not believe it can afford to incur even greater legal bills, while continuing to delay and reduce compensation available for claimants.

Therefore, after consultation with our legal team and consultative bodies, the Diocese of Burlington has filed a motion before the Bankruptcy Court to exit the Chapter 11 process. The Diocese intends to schedule the hearing on the motion for close to the end of 2026. Therefore, it is my hope that in the interim the Diocese and the Creditors Committee can continue discussions and facilitate a global resolution.

To all the claimants I apologize if this action causes you further distress. I believe the Diocese has made a good faith effort to resolve this process in a timely and just manner. Unfortunately, our best offer was not accepted.

I am extremely disappointed that we have not been able to resolve the Chapter 11 process and ask that you pray for the Diocese, the claimants, and for me, as we take the next steps in this process.

Seeking the intercession of Our Lady, Undoer of Knots, and St. Joseph, and remembering that God alone suffices, I remain

Devotedly yours in Christ,

The Most Reverend John J. McDermott
Bishop of Burlington