The Diocese of Alexandria is in a pre-confirmation reorganization posture: it filed a Chapter 11 plan and disclosure statement on June 30, 2026, but the reviewed docket contains no confirmation order or effective-date notice. The Diocese commenced the case on October 31, 2025, through its Chapter 11 petitionDkt. 1. Its first-day declarationDkt. 17 attributed the filing to 37 pending clergy-sexual-abuse lawsuits, gaps in historic insurance coverage, defense costs projected to exceed $14.8 million, a claims window extending to June 14, 2027, and recurring operating deficits. The stated objective was to prevent piecemeal litigation from exhausting available resources, treat abuse claimants through a collective process, and preserve the Diocese’s parishes, schools, and charitable ministries.
The case has been funded through consensual use of cash collateral rather than a new-money DIP facility. In December 2025, the Diocese sought authority to use interest generated by a Southern Heritage Bank certificate of deposit—principally to service a $1.65 million secured note and, if adequate protection was not impaired, to fund necessary operations—through the cash-collateral motionDkt. 127. The court’s interim cash-collateral orderDkt. 166 preserved the bank’s lien on the certificate and related interest and required regular interest payments at 6%; that relief was subsequently granted on a final basis in January 2026. The identified capital structure also includes a certificate-of-deposit-backed letter of credit and a guarantee of a school loan, but the record does not support a complete funded-debt total.
The June 2026 plan package moves the case toward disclosure-statement approval, solicitation, and a confirmation hearing, although voting results and a confirmation schedule are not yet reflected in the reviewed record. The latest substantive order in the supplied docket approved modified insider compensation only while the Diocese maintains positive cash flow and remains current on postpetition payables, U.S. Trustee fees, taxes, and monthly operating reports, underscoring the continuing liquidity discipline around operations in the modified-compensation orderDkt. 338. With no sale process or DIP financing identified, the near-term path is plan-driven: obtain authority to solicit, build claimant support, and proceed to confirmation.
