For at least the past 40-odd years, the Anglican Church has distanced and eventually disassociated itself from the federal policies of assimilating the Native population of Canada into the general populace. The church has also worked hard at building good relations with its Native members. Since the church, whether the national body or dioceses, is being sued by Natives and the federal government over this whole situation, it severely hampers its ability to claim the necessary neutral ground to bring about the healing and reconciliation it desires. The upshot is that by continuing to engage in legal battles, the church cannot come close to achieving its goals and it is headed towards death by a thousand cuts - or a thousand lawsuits. Death won't come from settlements, in or out of court, it will come from being bled to death financially by the legal costs and psychologically from the sheer effort of focusing on a problem with no clear solution.
Bankruptcy begins to look attractive because it offers a constructive way out.
First, it would allow the church to direct as much of its money as possible to the victims. Thirdly, it would allow the church to work constructively at bringing healing and reconciliation about beween the various parties because the conflict of interest would be removed. It would still be the Anglican Church, but it would be a new corporate enterprise, one not burdened by the past, morally, politically and financially. Lastly, it could all be done fairly, relatively cheaply, with little inconvenience to staff and relatively minor cost and inconvenience to the dioceses. There are undoubtedly other solutions, but here is one scenario.