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  Church Bankruptcy Plan Approved

By Ashbel S. Green and Lynne Terry
The Oregonian
April 13, 2007

http://blog.oregonlive.com/breakingnews/2007/04/church_bankruptcy_plan_approve.html

As expected, a judge has approved a $75 million plan to bring the Portland Archdiocese out of bankruptcy.

The plan includes more than $50 million for about 175 people who claimed they were molested by priests or other Catholic officials during the past 50 years.

The only objection to the plan came from a family who sued over their son's expulsion from St. Thomas More School. They claimed that the $3.8 million set aside for their case might not be enough should a jury award them punitive damages.

The plan had the support of the archdiocese, groups representing about 400,000 western Oregon Catholics, insurance companies and 175 people who claimed they were sexually abused.

Although U.S. Bankruptcy Judge Elizabeth L. Perris released her opinion this morning, she will not sign an order confirming the plan until Tuesday. As a result, a gag order preventing the parties from discussing the bankruptcy remains in effect until then.

Portland was the first archdiocese in the country to seek bankruptcy protection from sex-abuse litigation in 2004.

By this afternoon, Portlanders were beginning to react to the announcement. Among them was this man, who was about to attend Mass at St. Michael the Archangel in downtown Portland.

Meanwhile, here is what's going on with other diocesan bankruptcy proceedings throughout the United States:

Spokane

Bishop William Skylstad has rejected calls from prominent Catholics to resign over a proposed $48 million settlement with about 150 priest accusers.

The settlement includes insurance money and the sale of church properties. Parishes also are expected to contribute $10 million.

The diocese, which serves more than 90,000 Catholics in 13 eastern Washington counties, filed for Chapter 11 bankruptcy protection in December 2004 because of sex-abuse litigation.

If approved by sex-abuse accusers, the settlement will be taken up by a bankruptcy judge as part of a broader reorganization plan later this month.

San Diego

A federal bankruptcy judge has ordered an external audit of the diocese after accusing church officials of misrepresenting facts and possibly violating bankruptcy laws.

The diocese, which includes 1 million Catholics, sought bankruptcy protection in February in the face of lawsuits by more than 140 people claiming to be abused by priests.

In March, the diocese proposed a $95 million settlement. Attorneys for accusers said $200 million would be fair.

Davenport, Iowa

A judge has set a July 16 deadline for people to file claims of sexual abuse by priests against the Diocese of Davenport. The diocese, which serves more than 100,000 Catholics, filed for bankruptcy protection in October 2006 in the face of dozens of sex-abuse lawsuits.

The diocese has put up for sale church properties, including its headquarters and the bishop's home.

Tucson

The diocese sought bankruptcy protection in 2004 shortly after Portland, gaining approval of a $22 million settlement plan involving 50 priest accusers a year later. Tucson serves about 350,000 Catholics.

— Ashbel S. Green and Lynne Terry tonygreen@news.oregonian.com; ynneterry@news.oregonian.com

 
 

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