St. Paul archdiocese bankruptcy plan: at least $65M to creditors

MINNESOTA
Pioneer Press

The Archdiocese of St. Paul and Minneapolis has filed a bankruptcy reorganization plan that would set aside at least $65 million to pay clergy abuse victims and other creditors.

The plan filed Thursday also would create a $500,000 fund to pay for counseling for survivors.

Archbishop Bernard Hebda says he believes the plan is fair but might need modifications. He says the church wants a just and timely resolution.

Attorney Jeff Anderson, whose firm has filed most of the abuse claims against the archdiocese since Minnesota gave survivors of past abuse a new chance to sue, says he’s reviewing the plan but calls it “predictably deficient.” He accused the archdiocese this week of sheltering more than $1 billion in assets to avoid big payouts to abuse survivors.

The Archbishop responded to the accusation Thursday saying: “There has been nothing sinister in our actions — the Archdiocese has not hidden any Archdiocesan assets. We have disclosed everything and collaborated with the Court.”

He added that efforts to use assets from parishes, Catholic schools and other Catholic charitable organizations to pay the claims “is simply contrary to law.”

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