The Trustees of the Christian Brothers Oceania Province on Monday announced a proposed scheme to distribute its remaining assets, valued at roughly $216 million, to cover claims by survivors and victims of abuse as well as other creditors.
The scheme would see victims get more than if the organisation and its related entities entered liquidation, according to the group, however it says payments would be less than the dollar value of existing claims.
Over the past 45 years, the group has made total payments – including compensation and claimants' legal costs – in excess of $480 million.
The number and value of claims and quantum of settlements has accelerated over the past decade, it says.
"Consequently, in light of the difficult financial position we find ourselves in, and after extensive engagement with our professional advisors, we have reached the position that has been announced," the group said in a statement.
The group labelled the scheme, "the most responsible course of action".
For the scheme to proceed it would require the approval of at least 50 per cent of existing creditors, representing at least 75 per cent the value of total claims against the organisation, as well as court approval.
If the scheme is not approved, the group says it will be forced to enter liquidation.
The group''s remaining assets amount to 36 properties located around Australia valued at $216 million, it says.
Victims who have not yet launched a legal claim have been told they can still do so and may be eligible for payments.
"The creditors eligible to participate in the proposed scheme will include the victims and survivors of abuse experienced in our facilities (including those who have not yet come forward)," the statement said.
"Their interests, as well as all those of all our other creditors, remain our highest priority."
Members of the Congregation of Christian Brothers first arrived in Australia in 1843, operating institutions where many of Australia's most notorious instances of child sexual abuse took place.
"Whilst there is much to be proud of in what we have achieved, there is also a significant part of our history which is both shameful and painful," the statement said.
"Some members of our congregation have caused enormous harm through their criminal sexual abuse of children.
"It is a truth we do not resile from, and it is this which has brought us to this point today."
1800 RESPECT (1800 737 732)
National Sexual Abuse and Redress Support Service 1800 211 028
Lifeline 13 11 14
beyondblue 1300 22 4636
