MILWAUKEE (WI)
National Catholic Reporter
Marie Rohde | May. 2, 2014
MILWAUKEE
The bankruptcy of the Milwaukee archdiocese inched forward last month as U.S. Bankruptcy Judge Susan V. Kelley walked lawyers through changes in a document key to the confirmation of a reorganization plan. However, there are still major hurdles before the plan is presented for a vote by claimants, of whom 575 are survivors of sexual abuse.
Kelley scheduled a hearing on the plan that will run Oct. 14-17 with the understanding that lawyer for the creditors committee intend to file a motion to have the plan scrapped.
While lawyers for the claimants vigorously object to the bankruptcy plan, Kelley opened the door for the $4 million allocated by the archdiocese for compensation to be shared among the survivors. In its plan to settle the case, the archdiocese deemed all but 128 of the abuse claims not eligible for funds.
“I would like to see an explanation for not putting all the survivors in one class and letting them decide how the funds will be allocated,” Kelley said. “That’s how it happened elsewhere.”
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