New Orleans Archdiocese Bishop Gregory Aymond summoned all priests from parishes all over the region to a meeting Thursday afternoon to tell the gathered ministers the Diocese of New Orleans will be seeking bankruptcy protection.
The 227-year-old archdiocese has been felled by clergy sex abuse lawsuits and the enormous loss of revenue from the curtailment of services to the faithful.
The diocese has over 500,000 followers.
Although declaring bankruptcy, the diocese is expected to carry on its daily operations of serving Catholics and continuing charitable efforts.
With the filing New Orleans will join 26 other diocese which have sought legal protection from creditors and fiscal reorganization.
According to the Times-Picayune/New Orleans Advocate, investors are holding over $38,000,000 in bonds from the diocese.
Also looming in the distance is numerous abuse claims from victims of clergy sexual abuse spanning back more then 40-years.
This isn’t the first time the diocese has faced tough times.
After Katrina the diocese reorganized in a move that shuttered numerous churches with low fellowship and forced others to merge together to survive.
The annual budget for the diocese stands roughly at $45,000,000 and has seen funds coming in from the collection plate evaporate as services were all but stopped by Governor John Bel Edwards’ Stay-in-Place mandate.