Posts Tagged bankruptcy

Twin Cities archdiocese puts forth amended bankruptcy plan / National Catholic Reporter

An amended bankruptcy plan for the St. Paul-Minneapolis archdiocese would potentially double the funds set aside for its creditors to the tune of as much as $133 million. Despite that increase, attorneys representing the 440 claimants say that the archdiocese’s contribution to the trust falls well short of its total assets, what they estimate above $1 billion, as does the per-person payout when compared to past similar settlements …

“While ‘at first blush’ the new proposal seems like a lot of money, it ‘falls so far short’ when compared to settlements in other dioceses, Jeff Anderson, an attorney for the creditors, said at a press conference Tuesday (Nov. 15) afternoon outside the federal courthouse in Minneapolis.

“‘This is a sham. It is deficient, and it’s misleading, and so we really have to call it out for what it is,’ he said.”

By Brian Roewe, National Catholic Reporter — Click here to read the rest of this story.

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Judge rejects bid to tap parishes, schools in archdiocese bankruptcy / Star Tribune

Catholic parishes, schools and other church properties cannot be included among the assets in the bankruptcy of the Archdiocese of St. Paul and Minneapolis, a federal judge ruled Thursday (Jul. 28).

“U.S. Bankruptcy Judge Robert Kressel denied the request by a committee representing clergy abuse victims to consolidate the assets of various entities linked to the archdiocese, which would have increased funds available to settle victims’ claims.

“The decision was met with relief by Catholic parishes and a pledge to appeal the ruling by the victims’ committee.

“Archbishop Bernard Hebda said he was pleased with the decision.”

By Jean Hopfensperger, Star Tribune — Click here to read the rest of this story.

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Lawyers say Minnesota archdiocese hiding $1 billion in assets / Associated Press on Cruxnow.com

Attorneys on Tuesday (May 24) accused a Minnesota archdiocese of sheltering more than $1 billion in assets to avoid big payouts to abuse survivors as part of the church’s bankruptcy case.

“They say the Archdiocese of St. Paul and Minneapolis has some $1.7 billion in assets — far more than the $49 million it lists in a filing this week. In court papers, they accuse the archdiocese of vastly undervaluing assets such as the St. Paul Cathedral and tucking money away in other corporations to shield it from creditors.

“Jeff Anderson, an attorney for hundreds of people claiming sexual abuse by priests, said the local church had schemed to defraud creditors and deny fair resolution of claims.”

By Steve Karnowski, Associated Press, on Cruxnow.com — Click here to read the rest of this story.

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Video divides Twin Cities archdiocese, abuse victims / The Wall Street Journal

The Roman Catholic Archdiocese of St. Paul and Minneapolis and representatives for several hundred alleged victims of clergy sexual abuse are at odds over a seven-minute video that victims want to play following Mass in all 187 of the archdiocese’s parishes.

“The video, in which three alleged abuse victims appear, urges others to come forward and file claims against the archdiocese ahead of an Aug. 3 deadline. Filing formal claims is a critical step for those seeking to share a court-brokered settlement with the archdiocese and its insurance carriers.

“Lawyers for alleged victims have asked Judge Robert Kressel of the U.S. Bankruptcy Court in St. Paul, Minn., to approve a motion that would send the video to all parishes and request that they play the video ‘in connection with each Mass service’ on July 11 and July 12. The request stops short of asking the judge to explicitly order parishes to play the video.”

By Tom Corrigan, The Wall Street Journal — Click here to read the rest of this story.

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St. Paul Archdiocese declares bankruptcy, calling it ‘fairest’ course / Star Tribune

The Archdiocese of St. Paul and Minneapolis filed for Chapter 11 bankruptcy Friday, becoming the 12th in the nation to say its treasury cannot withstand the unprecedented wave of lawsuits from clergy abuse victims.

“The move freezes lawsuits against the church, protecting the archdiocese from creditors while allowing it to develop a reorganization plan. It also halts three abuse trials scheduled to begin Jan. 26.”

By Jean Hopfensperger, Star Tribune — Click here to read the rest of this story.

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