Diocese of New Ulm to File for Chapter 11 over Sex Abuse Claims

The Journal
March 3, 2017

http://www.nujournal.com/news/local-news/2017/03/03/diocese-of-new-ulm-to-file-for-chapter-11-over-sex-abuse-claims/

Bishop John LeVoir of the Diocese of the New Ulm has instructed attorneys to file for reorganization under Chapter 11 of the U.S. Bankruptcy code as it deals with the lawsuits that have been filed alleging childhood sexual abuse by diocesan priests.

A total of 101 lawsuits were filed against the diocese during three-year term set up by the Minnesota Child Victims Act, which lifted the statute of limitations on historical childhood sexual abuse claims.

The reorganization doesn’t include parishes, Catholic schools or other Catholic organizations served by the diocese.

“The Diocese has carefully reviewed how best to meet our financial obligations and determined that reorganization is the fairest way to resolve sexual abuse claims while allowing the church to continue our essential work of serving people in our local communities,” said Bishop LeVoir.