Rev. Salvatore J. Cordileone, in a letter to parishioners posted Friday on the archdiocese's website, said that a Chapter 11 bankruptcy reorganization "is very likely."
The archbishop added, "Chapter 11 would allow the archdiocese to reorganize its financial affairs to continue its vital ministries to the faithful and to the communities that rely on our services and charity,"
The archdiocese sold excess property and drew on insurance to pay about $68 million to about 100 plaintiffs to settle claims filed under a 2002 state law, the archbishop said.
In 2019, the state lifted a statute of limitations allowing about 500 additional sexual abuse claims to be filed, he said.
The bankruptcy move is coming now because "the judge assigned to us has set an imminent trial date for one of the initial cases," Cordileone said.
The archbishop cited the difficulty of trying to defend against the lawsuits.
He said most of the alleged abuse occurred in the 1960s, 1970s, and 1980s and involved priests, who are deceased or no longer in ministry.
An organization, known as the Survivors Network of those Abused by Priests criticized the bankruptcy proposal.
"It is all about protecting secrets first, and second, to reduce just compensation to the victims they have created," the organization said in a statement Friday.