Vermont Catholic Church’s Plan to Sell High School Campus Faces Challenge from Abuse Claimants

In a significant development within the Vermont Roman Catholic Diocese’s Chapter 11 financial reorganization case, creditors, representing over 100 clergy abuse claimants, have raised objections to a proposed plan to sell Rice Memorial High School. The diocese intends to sell the school to a nonprofit entity known as RMHS Inc., for $4.3 million, a figure that is only 14% of its $30.5 million appraised value. The creditors’ committee has challenged this transaction, describing it as a “functional insider transaction” due to the lack of a competitive bidding process and the absence of a broker or public solicitation of offers.

The creditors’ committee has expressed concerns that the sale, as proposed, could lead to a substantial and irreversible financial loss for the abuse claimants. They argue that a public offering could potentially yield higher proceeds, which would benefit the claimants. The committee has requested that the court limit any sale to a public offering to ensure a fair and competitive process, thereby safeguarding the interests of the survivors of childhood sexual abuse.

In contrast, the diocese has argued that a public sale process could negatively impact student enrollment at Rice Memorial High School, potentially forcing the buyer to reduce or withdraw their offer. They also noted that a private sale would eliminate the need for commission payments to brokers or agents, thereby increasing the net proceeds available for the bankruptcy estate.

This case is set to be considered by Judge Heather Cooper at a hearing in Burlington on September 1. The diocese filed for Chapter 11 protection in the fall of 2024, citing a series of nearly 70 priest misconduct settlements that had significantly reduced its financial holdings. The ongoing reorganization process has allowed the church to seek court and creditor permission to sell some of its properties, highlighting the complex interplay of financial, legal, and moral considerations in this case. As the community seeks justice and accountability, the principles of truth, mercy, and care for victims remain central to this unfolding story, echoing the biblical call to “do justice, love kindness, and walk humbly with your God” (Micah 6:8).

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