GALLUP (NM)
The Catholic Sun
GALLUP, N.M. (CNS) — When James Wall was installed by the Vatican as Bishop of the Diocese of Gallup in 2009, he knew there were festering issues regarding allegations of priest sex abuse, but not to the extent that has brought the sprawling southwestern diocese to the doors of U.S. Bankruptcy Court.
At Masses throughout the diocese Aug. 31 and Sept. 1, shocked parishioners were pre-emptively read a letter from Bishop Wall that in the face of insurmountable law suits the diocese intends to file for Chapter 11 bankruptcy protection.
Bishop Wall set no date for the court filing in his letter.
Seven other U.S. dioceses have filed for bankruptcy protection in the aftermath of sexual abuse lawsuits.
“While some of the claims relate to times when the diocese had some insurance, many relate to times when the diocese does not appear to have had insurance or the insurance is limited and not likely to cover the damages for which the diocese might be found liable,” Bishop Wall wrote. “Given the financial circumstances of the diocese, I have come to the conclusion that the only fair, equitable and merciful way to balance these obligations is by filing a Chapter 11 reorganization.”
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