News Release: Two Proposed Reorganization Plans to Move Forward in Archdiocese Bankruptcy Case
12/15/2016 4:25:00 PM
(Minneapolis, MN) – In a hearing today in United States Bankruptcy Court in the Archdiocese of Saint Paul & Minneapolis Bankruptcy case, the Honorable Robert J. Kressel ruled that two proposed reorganization plans will move forward. One plan was submitted by the Archdiocese and the other plan was submitted by the Creditors’ Committee.
“We are pleased that the court is going to allow the survivors’ voices to be heard,” said Attorney Jeff Anderson. Both plans are drastically different and this is the first time that two competing plans will go to vote in a Diocesan or Religious Order bankruptcy case.
The plan submitted by the Archdiocese proposes that the Archdiocese contribute $20 million of its own funds, that all insurance issues are settled for unreasonable amounts, and that all parishes will be released from the case without contributing a penny. The plan submitted by the Creditors’ Committee proposes that the Archdiocese contribute $80 million of its own funds, and that all survivors retain their rights to pursue the insurance companies and any claims they may have against the parishes.
A status conference is scheduled for January 12, 2017, to finalize the disclosure statements and determine a procedure for the forms and ballots to be sent to sexual abuse survivors and other creditors in the bankruptcy proceeding.
Contact Jeff Anderson: Office/651.227.9990 Cell/612.817.8665
Contact Mike Finnegan: Office/651.227.9990 Cell/612.205.5531