MINNESOTA
Star Tribune
By Jean Hopfensperger Star Tribune MAY 26, 2016 — 2:34PM
The Archdiocese of St. Paul and Minneapolis filed its financial reorganization plan in bankruptcy court Thursday, offering a strategy for regaining financial stability while compensating an expected 400 clergy abuse claims.
The plan calls for the creation of a $65 million trust fund for victims, which could increase if further insurance settlements are reached, as well as a $500,000 counseling fund for victims and new protocols to prevent future abuse.
“We filed our plan today — after 16 months — because victims/survivors cannot be compensated until a plan of reorganization is finalized and approved,” said Archbishop Bernard Hebda at a news conference Thursday afternoon.
“The longer the process lasts, more money is spent on attorneys’ fees and bankruptcy expenses; and … less money is available for them.”
Hebda acknowledged that the plan may face objections, but the archdiocese is committed to finding a “fair, just and timely resolution.”
Victims’ attorney Jeff Anderson issued a statement saying, “These actions have proven the Archdiocese’s pledge to put survivors first to be hollow and their pledge to be transparent to be shallow.” Anderson filed a motion in bankruptcy court Tuesday claiming the archdiocese had transferred assets to shield them from clergy abuse victims.
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