NEW MEXICO
Albuquerque Journal
By Olivier Uyttebrouck / Journal Staff Writer
Published: Monday, March 21st, 2016
Attorneys in the Diocese of Gallup’s Chapter 11 bankruptcy filed a reorganization plan Monday that contains cash contributions of $21 million from nine sources to settle claims filed by 57 alleged victims of clerical sexual abuse.
An attorney who represents abuse victims estimated Monday that payments would average about $350,000 per claimant, though amounts likely would vary depending on circumstances.
The settlement is subject to approval by U.S. Bankruptcy Judge David T. Thuma of Albuquerque, and a voting process will allow claimants to approve or reject the plan.
Under the plan, insurers are on the hook for at least $13.4 million, or about 64 percent of the total settlement. The Diocese of Gallup would contribute $3 million and may have to sell its chancery offices in Gallup, subject to the terms of a loan agreement with a bank.
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