New York financial turnaround expert tapped to advise on church bankruptcy case

The judge in the Archdiocese of New Orleans bankruptcy case has tapped Moshin “Mo” Meghji, a New York-based turnaround expert, to help advise her on several key issues in the long-running case — including whether a settlement can ultimately be reached between the nation’s second-oldest Roman Catholic diocese and hundreds of survivors of clergy sex abuse by local priests and deacons.

U.S. Bankruptcy Court Judge Meredith Grabill’s order came just 24 hours after she said she planned to appoint an unbiased expert without any ties to New Orleans or the high-profile case to tell her “if there is a path forward. If not, we need to cut our losses and look elsewhere for a solution.”

Meghji is the founder and managing partner of the firm M3 Partners, which specializes in turnarounds and restructurings, performance improvement, interim management and transactions, according to its website. It also has a litigation-support practice that specializes in complex business matters.

He has 30 years experience in the field and has led several recent significant corporate restructurings, including Sears Holdings Corporation and Barney’s Inc. He has served as a director of several corporate boards and was a global partner at Arthur Andersen & Co.

He graduated from Schulich School of Business in York, Canada and is a Certified Turnaround Professional in the U.S. His website does not indicate that he is a lawyer or a bankruptcy expert per se.

Meghji’s fees will be capped at $350,000, according to the court order, adding to the mounting legal and professional costs in the case that now top $40 million.

Grabill’s order directs Meghji and his legal counsel, Latham & Watkins, to assess where the case stands and provide a public report that will address four issues currently before the court: the existence and status of a reorganization plan and “available alternatives;” the structure, functioning and capabilities of Archbishop Gregory Aymond and his advisors on the case; a review of administrative costs; and an estimate of how much it will cost to resolve the case.

Significantly, Grabill has also ordered Meghji to determine the financial wherewithal of the archdiocese to reorganize and proceed as a going concern — meaning, its ability to continue functioning and serving its parishioners — “including the availability of insurance proceeds and contributions from non-debtor affiliates, as well as implementation of non-monetary remedies to attempt to prevent and/or respond to any future lawsuits by abuse survivors.”

“Mr. Meghji’s expert report will state the facts he relied upon and assumptions he made, and will provide recommendations to the court identifying any obstacles to and opportunities for successful resolution of this case,” Grabill’s order said.

Meghji and his team have just 45 days to collect all the necessary information. Grabill set an Oct. 9 deadline for his fact-finding to be completed and has said a public report is due on or before Oct. 23.

M3 did not immediately respond to a request for comment.