Judge rejects bid to tap parishes, others in Twin Cities archdiocese bankruptcy

Star Trubune

By Jean Hopfensperger Star Tribune JULY 28, 2016

Parishes and other church properties cannot be included among the assets in the bankruptcy of the Archdiocese of St. Paul and Minneapolis, a federal judge ruled Thursday.

U.S. Bankruptcy Judge Robert Kressel denied the request by a committee representing clergy abuse victims to consolidate the assets of various entities in the archdiocese, which would have the effect of increasing the money available to settle the victims’ claims.

The argument by victims’ attorneys “failed to sufficiently show that the benefits of consolidation outweigh the harm to creditors,” Kressel’s ruling said.

Victims’ attorney Jeff Anderson issued a statement protesting the ruling.

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