MINNESOTA
Star Tribune
By Jean Hopfensperger hopfen@startribune.com
The Archdiocese of St. Paul and Minneapolis filed for Chapter 11 bankruptcy Friday, becoming the 12th in the nation to say its treasury cannot withstand the unprecedented wave of lawsuits from clergy abuse victims.
The move freezes lawsuits against the church, protecting the archdiocese from creditors while allowing it to develop a reorganization plan. It also halts three abuse trials scheduled to begin Jan. 26.
The archdiocese is facing more than 20 lawsuits, with another 100 pending. The bankruptcy filing didn’t provide precise financial figures, but showed estimated liabilities of $50 to $100 million, estimated assets of $10 to $50 million, and estimated creditors of 200 to 999.
“Reorganization will allow the finite resources of the archdiocese to be distributed equitably among all victims/survivors,” said Archbishop John Nienstedt. “It will also permit the archdiocese to provide essential services required to continue its mission.”
The bankruptcy filing will allow the archdiocese to continue its daily operations while giving it time to reorganize its finances as a judge determines how much victims may be entitled to receive. …
Not everyone welcomed the move, including Twin Cities victims’ attorney Patrick Noaker, whose client’s lawsuit against the Rev. Thomas Stitts was to go to trial Jan. 26. He said he was disappointed “the archdiocese chose to file bankruptcy rather than have the facts exposed at trial.”
“Bankruptcies do not protect kids,” said Noaker in a written statement. “Trials and disclosures help protect kids. The Archdiocese’s bankruptcy filing just one week before officials would have to testify in a public court with television cameras is not the conduct of an organization committed to transparency and protecting kids.”
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