Judge Approves Revision of Fairbanks Diocese Bankruptcy Plan

By Mary Beth Smetzer
January 26, 2010

FAIRBANKS (AK) -- The third revision of the Fairbanks Catholic Diocese's bankruptcy plan was approved by U.S. Bankruptcy Court Judge Donald McDonald at a Monday morning hearing in Anchorage

The diocese sought protection under Chapter 11 in March 2008 after multiple sexual abuse claims were lodged against Catholic clerics and volunteers across the northern Alaska diocese.

The most recent revision has the consent the Creditors Committee and all but two of the 290 sexual abuse victims it represents.

Under the $9.8 million plan, all monetary creditors will be reimbursed in full and victims will compensated on a case by case basis.

A non-monetary agreement also is included calling for Bishop Donald Kettler to travel to the communities where abuse occurred and apologize to the victims and conduct healing ceremonies and listening sessions.

Contact staff writer Mary Beth Smetzer at or 459-7546.


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