Announcement: Christian Brothers website.
On 24 July 2026 the Trustees announced a development in relation to the earlier announced proposal for a scheme of arrangement. As with the earlier proposal, the revised scheme must be approved by both creditors and the court. The announcement reads (in part) as follows.
On 24 July 2026, the Trustees entered into a Memorandum of Understanding with the Trustees of Edmund Rice Education Australia (EREA) to develop and implement a revised creditors’ scheme of arrangement which is expected to provide an outcome for all creditors, including victims and survivors of abuse, which is better than both liquidation and the earlier proposed scheme.
The key principles which will underpin the development of the revised scheme are set out in the Memorandum of Understanding and include:
- The Province Entities’ properties will be realised by the Scheme Administrators and a scheme fund will be created, which will be controlled by the Scheme Administrators and used for distribution to creditors.
- All scheme creditors with crystallised monetary claims (including abuse claimants with outstanding settlements or judgments, including claims to legal costs) will be paid in full from the scheme fund as soon as sufficient funds are raised from the realisation of property.
- Abuse claimants with claims which are not yet crystallised will not be required to go through a claims adjudication process under the proposed scheme, and will instead be able to pursue EREA in civil litigation or via the National Redress Scheme.
- EREA will consent to being nominated as the proper defendant in all abuse claims against the Province once the scheme is effective (following creditor and court approval) and EREA, the Province and the Scheme Entities will take all steps required to ensure EREA is nominated as a proper defendant in all abuse claims.
- EREA will be responsible for the management and defence of abuse claims.
- EREA will be liable for settlements and judgments in all abuse claims to which it is a proper defendant.
In summary this means that not only will current claimants with settlements or judgments be paid in full, but EREA will assume responsibility and liability for all current and future legal proceedings as well as for claims before the National Redress Scheme.
An additional period of time is now required to give effect to this development, including to develop the revised scheme proposal in detail and to consult with creditors and their legal advisors in relation to the revised scheme. This is expected to take an additional six to eight weeks.
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