MILWAUKEE (WI)
Milwaukee Business Journal
Rich Kirchen
Senior Reporter
Milwaukee Business Journal
Nearly five years after the Archdiocese of Milwaukee filed for Chapter 11 reorganization, a U.S. Bankruptcy Court judge Monday approved a plan that distributes $21 million to 355 priest-abuse survivors and establishes a $500,000 fund to cover victims’ personal therapy sessions.
An additional 104 people who filed claims for priest abuse will receive $2,000 each out of the same $21 million settlement fund.
The reorganization plan releases all Archdiocese of Milwaukee parishes, schools and institutions from future lawsuits relating to abuse claims that were filed or could have been filed in the Chapter 11 proceeding, according to a Monday press release from the Archdiocese.
The settlement money will come from various sources, including about $11 million in insurance settlements and voluntary financial arrangements with the Catholic Cemetery Perpetual Care Trust of Milwaukee.
The Cemetery Perpetual Care Trust will lend the archdiocese $3 million; provide $5 million for past cemetery care expenses that had previously not been reimbursed by the trust; and contribute $8 million to settle all pending litigation.
The plan filed calls for paying $6.5 million in accrued professional fees in the case and capping at $1.25 million additional fees for a total of $7.75 million.
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