St. Paul-minneapolis Archdiocese Files for Bankruptcy to Pay out Sex Abuse Lawsuits

New York Daily News
January 16, 2015

http://www.nydailynews.com/news/national/st-paul-minneapolis-archdiocese-files-bankruptcy-article-1.2081176

[Letter from Archbishop John Nienstedt - Source: St. Paul and Minneapolis archdiocese]

[Court documents - Source: Jeff Anderson & Associates

[Application by Debtor to Employ Chapter 11 Counsel]

[Archdiocese Chapter 11 Petition]

[Archdiocese Signature Declaration]

[Debtor's Verified Application for Order]

[Notice of Intention to Seek Expedited Hearing ]

The Roman Catholic Archdiocese of St. Paul and Minneapolis has filed for bankruptcy in light of dozens of clergy sex abuse claims.

The decision puts several lawsuits alleging sexual assaults against the archdiocese on hold pending the outcome of the bankruptcy case.

“We’re doing the right thing,” Rev. Charles Lachowitzer said before Friday’s filing. “This decision reflects the end of a process of putting victims first.”

The archdiocese faces about two dozen lawsuits with more than 100 claims that could develop into lawsuits before May 2016.

By petitioning for a Chapter 11 reorganization, Archbishop John Nienstedt said the church can focus on victims.

“I have sensed their anger, their sorrow, and their intense sense of betrayal because of these unthinkably evil deeds. I deeply regret their suffering. I hope to do all I can to assist them toward healing,” Nienstedt said in a letter to the Star Tribune.

The funds can then be divided among the victims, he said in the letter.

The church’s parishes and schools are not expected to cease operations following the filing because it operates those facilities independently.

Though additional documentation detailing the diocese’s assets will become available through federal courts, its assets are estimated at $10 million to $50 million with creditors ranging from 200 to 300.

Law experts say filing for bankruptcy is a smart move for the archdiocese to help its victims — especially since its the 12th U.S. diocese to file for bankruptcy.

The Archdiocese of Milwaukee is still wrangling its bankruptcy case, but in Montana, a judge approved the Roman Catholic Diocese of Helana’s request in only a week.

Ahead of its filing, the archdiocese released documents naming accused priests and implemented policies to protect children.

With News Wire Services.

Contact: nhensley@nydailynews.com