On 22 June 2026, the Trustees of the Christian Brothers (Oceania Province) announced they would seek creditor and Court approval for a Creditors’ Scheme of Arrangement under the Corporations Act 2001 (Cth). For survivors of abuse experienced in Christian Brothers facilities, this announcement raises pressing and difficult questions about what happens next, whether existing claims can still proceed, and how compensation will be paid going forward.
This article explains what has been announced, how the proposed scheme would operate, and the practical implications for survivors who are considering, or have already commenced, a claim.
What Has Been Announced
The Trustees of the Christian Brothers, together with five other related Australian entities collectively known as the Province Entities, have announced their intention to propose a Creditors’ Scheme of Arrangement to creditors and the Court. The entities involved are:
- Trustees of the Christian Brothers
- Trustees of the Christian Brothers (Queensland)
- Christian Brothers Vic Property Ltd
- Trustees of the Christian Brothers in Western Australia Incorporated
- ERBOCF Limited, in its own capacity and as trustee for the Edmund Rice Brothers Oceania Community Fund
- The Christian Brothers Incorporated
According to public statements by the Trustees, the Province has paid in excess of $480 million in compensation and claimants’ legal costs between 1980 and 2025. The Province has indicated that the number and value of claims have accelerated significantly over the past decade, contributing to the financial position that prompted this announcement.
If approved, the proposed scheme would establish an orderly process for distributing the Province Entities’ remaining assets to creditors. Public statements confirm that the remaining assets principally comprise a portfolio of approximately 36 properties located across Australia, with an estimated total value of $216 million.
What is a Creditors' Scheme of Arrangement
A Creditors’ Scheme of Arrangement is a court-supervised restructuring process governed by Part 5.1 of the Corporations Act 2001 (Cth). In simple terms, it is a formal arrangement between an organisation (or in this case, a group of related entities) and its creditors to deal with outstanding claims and debts in an orderly way.
If the proposed scheme is approved, it would pool the Province Entities’ combined assets into a single fund and apply a structured process for distributing those funds to creditors.
The Province has confirmed that creditors include survivors and victims of abuse experienced in Christian Brothers facilities, including those who have not yet come forward.
How the Scheme Would Be Approved
Before the proposed scheme can take effect, it must satisfy two stages of approval:
- Creditor approval. At least 50 per cent of creditors who are present and voting (by number), and creditors representing at least 75 per cent of the total value of claims, must vote in favour of the scheme.
- Court approval. Once creditors have approved the scheme, the Court must also approve it before it becomes binding and effective.
If the proposed scheme is not approved at either stage, the Province Entities have indicated they will have no option but to enter liquidation.
The Proposed Court Moratorium
Alongside the scheme announcement, the Province Entities have indicated they will seek an immediate Court-approved moratorium. If granted, the moratorium would stay (in other words, pause) all current and future civil proceedings against the Province Entities until the terms of the scheme can be finalised, voted on, and approved by the Court. For survivors who currently have civil claims on foot, this is a significant development.
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What This Announcement Means If You Are a Victim of Institutional Abuse
The announcement has different implications depending on where you are in the process of seeking compensation. Importantly, the Province has confirmed that no part of the proposed process is intended to deprive a survivor of the right to have their claim heard. Several pathways remain open.
If You Have an Existing Civil Claim
If you have already lodged a civil claim against one or more of the Province Entities and your matter has not yet been determined or settled, the proposed moratorium (if granted by the Court) would stay your proceedings. Should the scheme then be approved by creditors and the Court, your claim would be transitioned into the scheme’s adjudication process rather than continuing as a civil action.
Because the rules and timelines around this transition are still being finalised, it is important to understand how the changes affect your particular matter. Speaking with a lawyer experienced in institutional abuse claims can help you preserve your position and make informed decisions about next steps.
If You Have Not Yet Made a Claim
If you have experienced abuse in a Christian Brothers facility and have not yet brought a claim, you would still be able to participate in the proposed scheme. Detailed instructions on how to lodge a claim under the scheme will be made available to creditors before any vote takes place, and updates will be published on the Province’s website.
You may also continue to pursue a claim through the National Redress Scheme, which operates as a separate pathway and is not affected by the proposed scheme of arrangement. Any allegation of criminal conduct should always be reported to your local Police.
The National Redress Scheme Pathway
The National Redress Scheme remains available to survivors of institutional child sexual abuse. It provides three forms of redress: a monetary payment, access to counselling and psychological care, and a direct personal response from the responsible institution.
Applications can be made until 30 June 2027.
If you would like to learn more about how the scheme works and what survivors can expect, you can read our guide to understanding the National Redress Scheme and your rights.
How Claims Would Be Assessed Under the Creditors Scheme
The Province has indicated that, if the creditor scheme is approved, claims by survivors would be assessed by a panel of independent adjudicators, which will principally comprise retired judges. The panel will assess claims in accordance with the applicable civil law and may request further information from claimants where necessary.
Survivors would also have the right to request an internal review of an adjudication decision and, ultimately, would be entitled to appeal to the Court.
The Province has confirmed that creditors, including survivors, are not expected to receive 100 cents in the dollar under the scheme. The actual return will depend on the scheme’s final terms and the total value of accepted claims. If the scheme is not approved and the entities enter liquidation, the Province has indicated that creditors would receive an even smaller return.
An Important Note About the Schools
A common question following the announcement concerns the Christian Brothers schools across Australia. The Province has clarified that those schools are owned and operated by Edmund Rice Education Australia (EREA), which is an independent entity with its own board and governance. The properties on which those schools are located are not owned by the Province Entities and are not part of the proposed scheme.
This means the scheme of arrangement and the proposed moratorium would not prevent civil claims being brought against EREA or other Catholic institutions where the alleged conduct relates to those entities. Survivors who are unsure about which entity is responsible for the facility in which the abuse occurred should seek legal advice early.
How Burke Mead Lawyers Can Help
If you are a survivor of abuse experienced in a Christian Brothers facility, this announcement may feel overwhelming. The legal landscape is shifting, deadlines and processes are still being finalised, and you may be unsure whether to act now or wait for further information.
At Burke Mead Lawyers, we approach every conversation with care, confidentiality, and respect. Our team has supported many survivors through complex institutional abuse matters across NSW. Contact us today.
