MINNESOTA
Catholic Spirit
Maria Wiering | May 26, 2016
Sixteen months after entering Reorganization under Chapter 11 of the U.S. Bankruptcy Code, the Archdiocese of St. Paul and Minneapolis filed a plan for Reorganization May 26. The plan identifies more than $65 million in assets the archdiocese anticipates will be available to compensate victims of clergy sexual abuse, with the potential for that amount to grow.
The plan outlines specific sources for funds available for victim remuneration, including at least $8.7 million from the sale of archdiocesan properties, including three chancery buildings on Cathedral Hill, as well as more than $33 million from insurance settlements. It establishes a trust for victim remuneration funds, with a court-approved allocation protocol.
The plan also includes settlements from parish insurers of approximately $13.7 million with the potential for future settlements from archdiocesan insurers that are not currently entering into agreements with the archdiocese. The archdiocese is seeking to transfer the rights of recovery for those policies to the trustee of the trust for victims.
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