Parishes’ assets targeted in archdiocese bankruptcy case

MILWAUKEE (WI)
Milwaukee Journal Sentinel

By Annysa Johnson of the Journal Sentinel

Oct. 18, 2012

The Catholic Archdiocese of Milwaukee, which faces more than a dozen civil fraud lawsuits over its handling of clergy sex abuse cases, filed for Chapter 11 bankruptcy protection in January. As the case proceeds, we’ll have updates, analysis, documents and more.

Lawyers for sexual abuse victims and other creditors in the Archdiocese of Milwaukee bankruptcy case telegraphed Thursday they intend to go after individual parish assets and proceeds from the archdiocese’s $105 million Faith in Our Future campaign.

The strategy is sure to reverberate in pews across the 10-county archdiocese.

Archbishop Jerome Listecki has maintained that parishes, schools and the Faith in Our Future fund would not be affected by the bankruptcy. The archdiocese appeared to stand by that Thursday, calling any claims to pursue those assets frivolous.

However, lawyers for the creditors committee at a status hearing in the case said they plan to sue to:

Consolidate the assets and liabilities of parishes in the archdiocese for the purpose of determining its estate – the money that would be available to fund settlements and allow the archdiocese to remain in business. Parishes have been incorporated separately from the archdiocese for more than a century, according to the archdiocese.

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