Judge Approves Stockton Diocese Bankruptcy Plan

By Almendra Carpizo
The Record
January 11, 2017

http://www.recordnet.com/news/20170110/judge-approves-stockton-diocese-bankruptcy-plan

The Diocese of Stockton is just weeks from exiting bankruptcy after a judge approved its reorganization plan on Tuesday.

The diocese had filed for bankruptcy more than two years ago after legal costs stemming from dozens of child sexual-abuse lawsuits depleted its funds.

In September, Bishop Stephen E. Blaire announced the diocese had negotiated with all the parties involved to reach a consensual plan that would allow the diocese to exit bankruptcy.

The plan approved by Judge Christopher M. Klein (the same judge who oversaw the bankruptcy of the city of Stockton) includes:

* $15 million to survivors of sexual abuse and a trust for the benefit of survivors.

* Payment of at least 50 percent of what is owed to unsecured creditors.

* Restructuring of secured loans.

* Funding from the plan will come from the Diocese of Stockton, settling insurance carriers and other entities associated with the diocese.

"The plan demonstrates the Diocese of Stockton's commitment to provide for survivors of sexual abuse in a fair, just and equitable manner from its available resources," according to a news release from the diocese.

Blaire expressed gratitude to everyone involved in the process for "helping bring this very difficult chapter in the history of the diocese to an equitable resolution."