St. Paul Archdiocese declares bankruptcy, calling it “fairest” recourse

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…