While support from survivors of clergy sexual abuse appeared to be coalescing around the settlement proposa l in the long-running Archdiocese of New Orleans bankruptcy case, a group of bondholders is now threatening to upend the plan.
The bondholders are owed nearly $30 million by the local church and have argued in court filings that the archdiocese has negotiated with them in bad faith. They say the proposed settlement, which would pay them $3 million, or 10% of what they are due, is unfair.
Last week, their attorneys questioned Archbishop Gregory Aymond and several of his top financial advisors under oath, seeking to learn more about the value of church assets. More depositions are scheduled in the coming days.
It’s unclear if the bondholders want to derail the settlement altogeth